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Showing posts from December 19, 2018

EGAT International Co. Ltd. Assigned 'BBB+' Rating; Outlook Stable

EGATi operates as the investment arm for its parent EGAT on behalf of the Thailand government. We view EGATi as an extension of EGAT and a core subsidiary. EGATi is likely to benefit from an extremely high support from the Thailand government via its parent. EGAT's essential role as the sole transmission services provider in Thailand, the entity's dominance in power generation, and the transparent and stable regulatory framework in Thailand should support EGAT's solid earnings profile and moderate leverage. We are assigning our 'BBB+' long-term issuer credit rating to EGATi. The stable outlook on EGATi over the next 12-18 months reflects the outlook on EGAT, and our expectation that EGATi will remain a core member of the group and continue to receive support from the government through the parent. SINGAPORE (S&P Global Ratings) Dec. 20, 2018--S&P Global Ratings said today that it had assigned its 'BBB+' long-term issuer credit rating

Rating Affirmed On Class C From California Republic Auto Receivables Trust 2017-1

OVERVIEW We reviewed California Republic Auto Receivables Trust 2017-1, which is backed by auto loan receivables. On June 13, 2018, we placed the rating on the class C notes on CreditWatch negative and we maintained the negative CreditWatch placement on Sept. 21, 2018. Today, we affirmed our rating on the class C notes from series 2017-1 and removed it from CreditWatch negative. NEW YORK (S&P Global Ratings) Dec. 19, 2018--S&P Global Ratings today affirmed its 'BBB (sf)' rating on the class C notes from California Republic Auto Receivables Trust 2017-1. We also removed the rating from CreditWatch, where we placed it with negative implications on June 13, 2018. We maintained the negative CreditWatch placement on Sept. 21, 2018. Today's affirmation reflects collateral performance to date and our expectations regarding future collateral performance, as well as the transaction's structure and credit enhancement. Additionally, we incorporated seco

Cigna Corp. And Subsidiaries Downgraded As Express Scripts Holdings Co. Acquisition Nears Completion

U.S. health insurer Cigna Corp. has received all state regulatory approvals to complete its acquisition of pharmacy benefit manager (PBM) Express Scripts Holding Co. (ESI). We are lowering our ratings on Cigna Corp. and its subsidiaries and removing them from CreditWatch with negative implications, where we placed them on March 8, 2018. The negative outlooks reflect the potential for additional downgrades if Cigna encounters business and/or integration setbacks and cannot reduce adjusted leverage in 2019-2020. NEW YORK (S&P Global Ratings) Dec. 19, 2018--S&P Global Ratings said today it lowered its issuer credit rating (ICR) on Cigna Corp. to 'A-/A-2' from 'A/A-1', and its ratings on Cigna's senior unsecured debt to 'A-' from 'A'. We also lowered our financial strength and ICRs on Cigna Corp.'s operating subsidiaries, Connecticut General Life Insurance Co. (CGLIC) and Cigna Health and Life Insurance Co. (CHL) to 'A

Various Rating Actions Taken On 59 Classes From 18 U.S. RMBS Transactions

OVERVIEW We reviewed 59 ratings from 18 U.S. RMBS transactions issued between 2001 and 2007. All of these transactions are backed by subprime collateral. Of the 59 ratings, we raised 12, lowered five, and affirmed 42. NEW YORK (S&P Global Ratings) Dec. 19, 2018--S&P Global Ratings today completed its review of 59 classes from 18 U.S. residential mortgage-backed securities (RMBS) transactions issued between 2001 and 2007. All of these transactions are backed by subprime collateral. The review yielded 12 upgrades, five downgrades, and 42 affirmations. Analytical Considerations We incorporate various considerations into our decisions to raise, lower, or affirm ratings when reviewing the indicative ratings suggested by our projected cash flows. These considerations are based on transaction-specific performance or structural characteristics (or both) and their potential effects on certain classes. Some of these considerations include: Collateral performance/delin

ARL First LLC Series 2012-1 'A (sf)' Rating Affirmed On Class A-2

OVERVIEW ARL First LLC's series 2012-1 issuance is an ABS transaction backed by a portfolio of railcars. We affirmed our 'A (sf)' rating on the class A-2 notes. The affirmation reflects our view of the collateral's stable performance, ARL's servicing capability, and the transaction's ability to withstand the retrofitting cost under the new tank car regulations. CENTENNIAL (S&P Global Ratings) Dec. 19, 2018--S&P Global Ratings today affirmed its 'A (sf)' rating on ARL First LLC's series 2012-1 class A-2 notes, an asset-backed securities (ABS) transaction backed by a portfolio of railcars. The affirmation reflects our view of the collateral's stable performance, ARL's servicing capability, and the transaction's ability to withstand the retrofitting cost under the new tank car regulations. As of June 30, 2018, the class A-2 notes were backed by a portfolio of 2,348 railcars with a fair market value of $199.751 milli

Cvent Inc. Outlook Revised To Stable From Positive On Elevated Leverage From Growth Investments; 'B-' Rating Affirmed

S&P Global Ratings expects Cvent Inc.'s 2019 credit metrics to be weaker than we forecast due to lower than expected EBITDA generation and increased debt. We are revising the outlook on Cvent to stable from positive and affirming our 'B-' issuer credit rating. We are also affirming our 'B-' issue-level and '3' recovery ratings on the company's first-lien term loan. The stable outlook reflects S&P Global Ratings' view that adjusted leverage will be high, in the low-11x area, for 2019, following a decrease in EBITDA margins as reflected in Cvent's financials over the past 12 months. This decline was due to Cvent's focus on revenue generation by reinvesting into the business. We expect Cvent's leverage to remain above 7x for the foreseeable future. NEW YORK (S&P Global Ratings) Dec. 19, 2018—S&P Global Ratings today took the rating actions listed above. The outlook revision to stable from positive reflects S

Livingston County, KY GO Rating Placed On CreditWatch Negative On Financial Uncertainty

CHICAGO (S&P Global Ratings) Dec. 19, 2018--S&P Global Ratings placed its long-term rating on Livingston County, Ky.'s general obligation (GO) debt on CreditWatch with negative implications. "The CreditWatch is due to the county's audit for fiscal year June 30, 2017, not being available yet," said S&P Global Ratings credit analyst Jessica Akey. "In addition, we believe that there is uncertainty regarding the county's financial position, particularly growing pension costs, which could pressure its long-term credit quality." We consider the receipt of the fiscal 2017 audit necessary to maintain the rating. If we do not receive the fiscal 2017 audit within 15 days from the date of this publication, we may withdraw the rating due to a lack of timely information, preceded, in accordance with our policies, by any change to the rating that we consider appropriate given available information, as described in our commentary, titled "

Express Scripts Holding Co. Upgraded To 'A-' Following Cigna's Receipt Of Approval

U.S. health insurer Cigna Corp. has received all state regulatory approvals to complete its acquisition of pharmacy benefit manager (PBM) Express Scripts Holding Co. Halfmoon Parent Inc. (New Cigna) will become the new ultimate parent of the group. We raised all our ratings, on Express Scripts Holding Co. and its subsidiaries to 'A-' from 'BBB+'. We are also removing the ratings from CreditWatch positive, where we placed them on Sept. 4, 2018. The outlook is negative. We affirmed our 'A-2' short-term rating on the company. We view Express Scripts and its subsidiaries (the Express Scripts subgroup) as core subsidiaries of Halfmoon (New Cigna), and are equalizing the ratings on a go-forward basis. NEW YORK (S&P Global Ratings) Dec. 19, 2018—S&P Global Ratings today took the rating actions listed above. The upgrade follows Cigna's receipt of regulatory approvals for its acquisition of Express Scripts. Halfmoon Parent Inc. (New Cigna)

CF Industries Inc. Outlook Revised To Stable On Stronger Fertilizer Prices; 'BB+' Rating Affirmed

Pricing for CF Industries Inc.'s nitrogen-based fertilizer products including urea have firmed up in 2018, contributing to better operating performance. We anticipate this improvement will be sustainable at least over the next 12 months. The improved operating performance has strengthened credit metrics, including the funds from operations-to-total debt ratio, which we expect will be at least 20% over the next 12 months. We revised our outlook to stable from negative and affirmed our issuer credit rating at 'BB+'. We also affirmed our issue-level and recovery ratings on the company's secured notes and revolving credit facility at 'BBB-' and '1', respectively, and on the unsecured debt at 'BB+' and '4', respectively. NEW YORK (S&P Global Ratings) Dec. 19, 2018--S&P Global Ratings today took the rating actions listed above. The outlook revision on CF Industries to stable from negative reflects our assumption that the

Various Rating Actions Taken On 83 Classes From 12 U.S. RMBS Transactions

OVERVIEW We reviewed 83 ratings on 12 U.S. RMBS transactions issued between 2003 and 2007. All of these transactions are backed by alternative-A and negative amortization loans. Of the 83 ratings, we raised 25, lowered 11, and affirmed 47. CENTENNIAL (S&P Global Ratings) Dec. 19, 2018--S&P Global Ratings today completed its review of 83 classes from 12 U.S. residential mortgage-backed securities (RMBS) transactions issued between 2003 and 2007. All of these transactions are backed by alternative-A and negative amortization loans. The review yielded 25 upgrades, 11 downgrades, and 47 affirmations. ANALYTICAL CONSIDERATIONS We incorporate various considerations into our decisions to raise, lower, or affirm ratings when reviewing the indicative ratings suggested by our projected cash flows. These considerations are based on transaction-specific performance or structural characteristics (or both) and their potential effects on certain classes. Some of these conside

The Imagine Group LLC Rating Lowered To 'B-'; Debt Ratings Lowered; Outlook Stable

U.S.-based The Imagine Group LLC has produced lower-than-expected cash flows year to date relative to its debt burden due to higher–than-expected costs and working capital use. We expect free operating cash flow (FOCF) to debt to remain under 5% in the next 12 months. We are lowering our issuer credit rating on Imagine to 'B-' from 'B', the issue-level rating on the first-lien credit facility to 'B-' from 'B', and issue-level rating on the second-lien term loan to 'CCC' from 'CCC+'. The recovery ratings are unchanged. Our stable outlook reflects our expectation that FOCF to debt will remain at or below 5% over the next 12 months. We expect the company will continue to face significant competition, and ongoing restructuring costs will pressure EBITDA generation and cash flows despite modest revenue growth. CHICAGO (S&P Global Ratings) Dec. 19, 2018—S&P Global Ratings today took the rating actions listed above. The

Ratings Raised On 23 Tranches Of Australian RMBS; Ratings Lowered On Six Tranches; 138 Affirmed

MELBOURNE (S&P Global Ratings) Dec. 20, 2018--S&P Global Ratings today raised its ratings on 23 tranches of Australian residential mortgage-backed securitization (RMBS) issued by transactions sponsored by a range of bank lenders. At the same time, we lowered our ratings on six tranches and affirmed our ratings on 138 tranches (see list). The rating actions follow our periodic surveillance review of 50 securitization transactions sponsored by other banks, a group of diverse lenders that falls outside the major banks and regional banks categories. Key observations in relation to these transactions are: Portfolio collateral quality for the other banks sector is solid, as evidenced by modest loan-to-value (LTV) ratios of around 58% on average, based on the valuation at origination. The weighted-average seasoning for this group of transactions is more than six years. In our opinion, the combination of significant seasoning and the buildup of equity buffers over time m

Nippon Life Insurance Co. Outlook Revised To Positive On Enhanced Capital; Ratings Affirmed At 'A+'

We expect Nippon Life will continue to build up capital through the ongoing accumulation of retained earnings. We are therefore revising up our outlook on the insurance group to positive from stable. We are affirming our financial strength, issuer, and issue credit ratings on Nippon Life, in consideration of our beliefs that its capitalization could be maintained at the current category, and that there are some constraining factors on the ratings, such as relatively high sensitivity to market fluctuations. We are also revising up our enterprise risk management assessment based on evidence that the company is effectively using its risk management framework. TOKYO (S&P Global Ratings) Dec. 20, 2018--S&P Global Ratings today said it has affirmed its financial strength and long-term issuer credit ratings on Nippon Life Insurance Co. (Nippon Life) at 'A+'. We also affirmed the issue credit ratings on its hybrid debt at 'A-'. At the same time, we rev

Mitsui Life Insurance Outlook Revised To Positive And Ratings Affirmed At 'A' Following Similar Actions On Parent

We revised our outlook on the ratings on Nippon Life, the parent of Mitsui Life, to positive from stable on Dec. 20. We view Mitsui Life as a strategically important subsidiary within the Nippon Life group. We incorporate group support into our ratings on Mitsui Life. We are revising our outlooks on the financial strength and long-term issuer credit ratings on Mitsui Life to positive from stable. We are also affirming our 'A' ratings on Mitsui Life. TOKYO (S&P Global Ratings) Dec. 20, 2018--S&P Global Ratings today said it has revised its outlooks on the financial strength and long-term issuer credit ratings on Japan-based Mitsui Life Insurance Co. Ltd. (Mitsui Life). We have affirmed our 'A' ratings on the insurer. The outlook revision on Mitsui Life reflects our earlier rating actions on its parent Nippon Life Insurance Co. (Nippon Life, A+/--), the core entity within the Nippon Life group. We revised the outlook on our ratings on Nippon Life

MUFG Securities (Europe) Assigned 'A' Rating; Outlook Positive

We regard MUFG Securities (Europe) as a core subsidiary of MUFG because of its close links with the parent company. We believe it is highly likely to receive extraordinary group support in times of need. We are assigning our 'A' long-term issuer credit rating to MUFG Securities (Europe). The outlook is positive, reflecting the positive outlooks on the core banking subsidiaries of MUFG. TOKYO (S&P Global Ratings) Dec. 20, 2018--S&P Global Ratings today said it has assigned its 'A' long-term issuer credit rating to Amsterdam-based MUFG Securities (Europe) N.V., which Mitsubishi UFJ Financial Group Inc. (MUFG; A-/Positive/--) wholly and indirectly owns. The outlook on the long-term issuer credit rating is positive. The rating on MUFG Securities (Europe) reflects our assessment that it is a core subsidiary of Japan-based MUFG. We believe MUFG Securities (Europe) will be highly likely to receive group support in times of need. We therefore equalize

Hanwha General Insurance Co. Ltd. Rating Affirmed At 'A'; Outlook Stable

We believe Hanwha insurance group has a very strong presence in Korea's insurance market supported by a well-established franchise and extensive controlled distribution channels. In our view, HGI plays an integral role for the insurance group's strategy to provide one-stop insurance services across non-life and life insurance products. We assess HGI to be a core subsidiary of Hanwha Life and believe the insurer will receive extraordinary support when needed. We are affirming our 'A' long-term issuer credit and financial strength ratings on HGI. The stable outlook reflects our view that HGI will remain a core subsidiary and that the insurance group will sustain its modest capitalization over the next two years. HONG KONG (S&P Global Ratings) Dec. 20, 2018--S&P Global Ratings affirmed its 'A' long-term issuer credit and financial strength ratings on Korea-based Hanwha General Insurance Co. Ltd. (HGI). The outlook is stable. We affirmed t

U.K.-Based Energy Utility SSE PLC Downgraded To 'BBB+' On Weaker Credit Metrics; Outlook Stable

Energy company SSE announced on Dec. 17, 2018, that it will not proceed with the plan to combine its household supply business in the U.K., SSE Energy Services, with npower Group PLC. We understand the company remains committed to looking at other options to separate SSE Energy Services. Considering the challenging market conditions in the U.K. electricity and gas supply market, we believe that it is very unlikely that any debt will be transferred as part of any spinoff or any other type of transaction involving SSE's supply business, which could have offset some of the loss of cash flow for SSE and support deleveraging. We now forecast S&P Global Ratings-adjusted funds from operations (FFO) to debt at about 18%-20% for financial years 2019-2021, a level we do not see as commensurate with the 'A-' rating. We are therefore lowering our long-term ratings on SSE to 'BBB+' from 'A-' and the rating on the hybrid debt to 'BBB-' from '

Ratings Assigned To Proteus RMBS' Class A To E Irish RMBS Notes

OVERVIEW We have assigned our ratings to Proteus RMBS' class A to E-Dfrd notes. The transaction is a securitization of a pool of buy-to-let and owner-occupied residential mortgage loans secured on properties, mainly located in Ireland. MADRID (S&P Global Ratings) Dec. 20, 2018--S&P Global Ratings has assigned its credit ratings to Proteus RMBS DAC's (Proteus) class A, B-Dfrd, C-Dfrd, D-Dfrd, and E-Dfrd notes. Proteus also issued unrated class F, Y notes, and X certificates (see list below). Proteus is a securitization of a pool of buy-to-let (BTL) and owner-occupied residential mortgage loans secured on properties in Ireland, other than 77 properties that are located outside Ireland, originated by Danske A/S. On Oct. 23, 2017, the seller, Proteus Funding DAC, agreed to purchase a portfolio of Irish residential mortgages from the vendor, Danske Bank A/S. On the Dec. 15, 2017 closing date, the issuer used the note issuance proceeds of the class A, B,

CNN's Don Lemon discusses how President Donald Trump's assault on various American institutions is starting to backfire on him. #CNN #News

Don Lemon: Trump's bullying is finally backfiring on him CNN's Don Lemon discusses how President Donald Trump's assault on various American institutions is starting to backfire on him. #CNN #News Other stories about: Don Lemon: Trump's bullying is finally backfiring on him