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Asante Health System, OR Revenue Bond Outlook Revised To Stable From Negative On Improved Operating Performance

CHICAGO (S&P Global Ratings) May 31, 2019--S&P Global Ratings revised its outlook to stable from negative and affirmed its 'A+' underlying rating (SPUR) on Medford Hospital Facilities Authority, Ore.'s revenue debt, issued for Asante Health System. "The outlook revision reflects our view that Asante can sustain its ambitious capital plans, including $200 million of new debt to be issued within the next 18 months, at the current rating level," said S&P Global Ratings credit analyst Allison Bretz. Asante's operating performance in fiscal 2018 and through the first five months of fiscal 2019 (ended Feb. 28, 2019) has improved markedly, supporting a stronger financial profile. While our ultimate rating determination will depend on the final plan of finance, as well as on Asante's financial profile at the time of issuance, we believe these operating improvements are sustainable and, coupled with the system's healthy liquidity, provide ample

Troy University, AL Facilities Revenue Bond Outlook Revised To Stable From Negative On Positive Operating Margins

SAN FRANCISCO (S&P Global Ratings) May 31, 2019--S&P Global Ratings revised its outlook to stable from negative and affirmed its 'A+' long-term rating and underlying rating (SPUR) on Troy University, Ala.'s outstanding facilities revenue bonds. "The stable outlook reflects our view of Troy University's solid balance sheet and second year of positive operating margins," said S&P Global Ratings credit analyst Phillip Pena. We assessed Troy's enterprise profile as strong, characterized by declining full-time-equivalent enrollment, improving retention, and relatively stable selectivity. We assessed Troy University's financial profile as strong, characterized by healthy, though weakened, financial resources for the rating category; second consecutive year of positive operating margins; and an average maximum annual debt service burden. Combined, we believe these credit factors lead to an indicative stand-alone credit profile of 'a+'

Sheridan Fund I Downgraded To 'SD' On Revolver Extension; Term Loan Ratings Lowered To 'CC' On Extension Proposal

Sheridan Fund I extended the maturity date of its revolving credit facilities (RBL) to June 14, 2019, as negotiations proceed to extend the fund's debt maturities to match the expected 2022 end of the fund. We view the extension of the RBL maturities as tantamount to a default given that the lenders were not provided with adequate offsetting cash-based compensation. We also view the fund's proposed transaction as a distressed exchange. As a result, we are lowering our issuer credit ratings on Sheridan Fund I to 'SD' (selective default) from 'CCC-' and the issue ratings on the revolving credit facilities to 'D' from 'CCC+'. At the same time, we are lowering our issue ratings on the first-lien senior secured term loan to 'CC' from 'CCC+'. NEW YORK (S&P Global Ratings) May 31, 2019--S&P Global Ratings said today it lowered its long-term issuer credit ratings on Sheridan Production Partners I-A L.P., Sheridan Investment

Sheridan Fund II Downgraded To Selective Default On Debt Service Deferrals

Sheridan Fund II has entered into an agreement with its creditors to defer its debt service payments on its revolving credit facility and secured term loan to July 31 without providing additional consideration to debtholders. As a result, we are lowering our issuer credit ratings on the Sheridan Fund II to 'SD' (selective default) from 'CCC-'. We are also lowering the issue ratings on the revolving credit facility and the senior secured term loan to 'D' from 'CCC+', and the issue rating on the subordinated term loan to 'CC from 'CCC'. On May 31, 2019, S&P Global Ratings lowered its long-term issuer credit ratings on Sheridan Production Partners II-A L.P., Sheridan Investment Partners II LLC, and Sheridan Production Partners II-M L.P. (collectively referred to as "Sheridan Fund II") to 'SD' (selective default) from 'CCC-'. At the same time, we lowered our issue ratings on the revolving credit facility and

Wall Street Systems Holdings Inc. 'B' Rating Removed From CreditWatch Negative; Outlook Negative

Foreign exchange and treasury risk management software provider Wall Street Systems Holdings Inc.'s planned merger with OpenLink International Holdings and Triple Point Holdings Inc. to form ION Corporate Solutions Finance Ltd. did not proceed. S&P Global Ratings removed its 'B' issuer credit rating on Wall Street Systems from CreditWatch, where it was placed with negative implications on May 2, 2019. Our 'B' issue-level rating and '3' recovery rating on the first-lien debt remain unchanged. The negative outlook on Wall Street Systems reflects our view that leverage will remain high over the course of 2019, incorporating the debt it raised to fund the acquisition of Allegro. NEW YORK (S&P Global Ratings) May 31, 2019—S&P Global Ratings today took the rating actions listed above. We resolved the CreditWatch placement and the outlook is now negative as the consolidation of three ION portfolio companies did not proceed. As a result, WSS will

Sonoma County Water Agency, CA Water Bond Rating Raised To 'AAA' On Extremely Strong Financial Performance

SAN FRANCISCO (S&P Global Ratings) May 31, 2019--S&P Global Ratings raised its long-term rating to 'AAA' from 'AA+' on Sonoma County Water Agency, Calif.'s water revenue bonds outstanding. At the same time, S&P Global Ratings assigned its 'AAA' long-term rating to the agency's 2019 series A water revenue bonds. The outlook is stable. "The raised rating reflects our view of the agency's extremely strong recent financial performance--even when challenged by the recent drought--which we expect to be sustainable, given the agency's manageable capital needs over the upcoming five-year period," said S&P Global Ratings credit analyst Chloe Weil. "The stable outlook reflects our view of the agency's strong service area economy, sound financial metrics, and track record of timely rate adjustments," Ms. Weil added. Additional factors supporting the rating include: The importance of the agency's water suppl

BRF S.A. And Marfrig Global Foods Ratings Placed On CreditWatch Positive On Potential Merger

BRF S.A. and Marfrig Global Foods S.A. announced yesterday that they have started discussions for a potential merger of their operations. Although the disclosed information is limited so far, we understand that the transaction could have a positive impact on our ratings on BRF and Marfrig due to the potential strength of the combined business, with limited impact to the consolidated leverage. We're placing all of our credit issuer and issue-level ratings on BRF and Marfrig on CreditWatch with positive implications. Our CreditWatch listing reflects we could either raise or affirm our ratings after completion of our review of the combined business's credit profile. We expect to resolve the CreditWatch placement when and if the merger is completed and we analyze the combined company's strategy, management structure, financial policy, and leverage profile. Also, we currently view that a potential upgrade would be most likely limited to one notch. SAO PAULO (S&a

Hobart, IN GO Debt Rating Lowered To 'A' From 'AA-' On Budgetary Challenges; Outlook Negative

NEW YORK (S&P Global Ratings) May 31, 2019--S&P Global Ratings lowered its rating on Hobart, Ind.'s outstanding general obligation (GO) debt two notches to 'A' from 'AA-' based on three years of operating deficits that resulted in a deficit operating reserve in 2018. The outlook is negative. "The downgrade reflects our opinion of the city's various budget challenges over the past three years, which included increased salary and overtime costs that led to recurring deficits that ultimately resulted in a deficit operating reserve in 2018," said S&P Global Ratings credit analyst Linda Yip. Management implemented a number of measures to generate a surplus in 2019. However, the reserves are still expected to be at a deficit. While officials are continuing to identify additional opportunities to chip away at this deficit, the city faces an additional challenge from the loss of the circuit-breaker exemptions in 2020. If management is unable to

North Carolina 2019A Build NC Bonds Assigned 'AA+' Rating; Other Ratings Affirmed

NEW YORK (S&P Global Ratings) May 31, 2019--S&P Global Ratings assigned its 'AA+' rating to North Carolina's series 2019A limited obligation (Build NC) bonds and affirmed its 'AAA' rating on the state's general obligation (GO) bonds. "The Build NC rating is based on the application of our 'Issue Credit Ratings Linked To U.S. Public Finance Obligors’ Creditworthiness' criteria," said S&P Global Ratings credit analyst Timothy Little. The criteria were published Jan. 22, 2018, on RatingsDirect. The series 2019A bonds are limited obligations of the state payable from funds available in the state Highway Trust Fund, separate and distinct from the state's general fund, subject to annual appropriation by the General Assembly. "The GO rating reflects our view of North Carolina's strong economic growth, history of prudent fiscal management, low-to-moderate debt burden, and well-funded pension system," said Mr. Little.

WaterBridge Midstream Operating LLC Assigned 'B' Issuer Credit Rating And Stable Outlook; Debt Also Rated

Texas-based water management solutions company WaterBridge Midstream Operating LLC is issuing a $1 billion term loan B due 2026 to refinance its capital structure, fund the acquisition of PDC Energy Inc.'s water infrastructure assets, and fund capital expenditures. We assigned our 'B' issuer credit rating to parent company WaterBridge Operating LLC (WaterBridge) and WaterBridge Midstream Operating LLC (Midstream). We also assigned our 'B' issue-level rating and '3' recovery rating to Midstream's $1 billion term loan B. At the same, we assigned a 'BB-' issue-level rating and '1' recovery rating to the $150 million super-priority revolving credit facility due 2024. The stable outlook reflects our view that WaterBridge will successfully integrate its recent acquisitions resulting in adjusted debt to EBITDA of approximately 5x for 2019. NEW YORK (S&P Global Ratings) May 31, 2019--S&P Global Ratings today took the rating action

Huntley Area Public Library District, IL GO Library Bonds Assigned 'AA' Rating On Balanced Operations, Stable Economy

CHICAGO (S&P Global Ratings) May 31, 2019--S&P Global Ratings assigned its 'AA' rating to Huntley Area Public Library District, Ill.'s series 2019 general obligation (GO) library bonds. The outlook is stable. "The rating reflects our opinion that management will likely take the necessary steps to maintain balanced operations and consistent reserve levels during the outlook's two-year horizon," said S&P Global Ratings credit analyst Helen Samuelson. "The district's access to the Chicago MSA economy provides additional rating stability, our view," Ms. Samuelson added. The rating reflects our opinion of the district's: Participation in the Chicago metropolitan statistical area's (MSA) broad and diverse economy; Very strong median household effective buying income (EBI) and per capita market value; Positive budgetary performance, which has resulted in strong modified cash reserves, which we expect will be maintained for t

Trimaran Cavu 2019-1 Ltd. Notes Assigned Ratings

Trimaran Cavu 2019-1 Ltd.'s issuance is a CLO transaction backed by primarily broadly syndicated speculative-grade senior secured term loans that are governed by collateral quality tests. We assigned our ratings to the class A-1, B, C-1, C-2, D, and E notes. We also assigned our ratings to the class B-1, B-1X, B-2, B-2X, B-3, B-3X, B-4, B-4X, C-1-1, C-1-1X, C-1-2, C-1-2X, C-1-3, C-1-3X, C-1-4, C-1-4X, D-1, D-1X, D-2, D-2X, D-3, D-3X, D-4, D-4X, E-1, E-1X, E-2, E-2X, E-3, E-3X, E-4, and E-4X notes. The ratings reflect our view of the transaction's credit enhancement and legal structure, among other factors. CENTENNIAL (S&P Global Ratings) May 31, 2019--S&P Global Ratings today assigned its ratings to Trimaran Cavu 2019-1 Ltd.'s fixed- and floating-rate notes (see list). The note issuance is a collateralized loan obligation (CLO) transaction backed by primarily broadly syndicated speculative-grade senior secured term loans that are governed by collat

American Psychological Assn., DC Issue Credit Rating Cut To 'BBB' On Consistent, Growing Operating Deficits; Otlk Stable

CHICAGO (S&P Global Ratings) May 31, 2019--S&P Global Ratings lowered its issuer credit rating (ICR) on American Psychological Association and subsidiaries. (APA), D.C. to 'BBB' from 'BBB+'. The outlook is stable. "The downgrade reflects our view that of the variable membership trend with slight growth for fiscal 2018 and the operating pressures that continue to persist due to APA's investment in its strategic priorities for the transformation of the organization as a whole," said S&P Global Ratings credit analyst Gauri Gupta. We recognize that the organization takes investment draws by liquidating the investment portfolio and these are not reflected as operating revenue, therefore understating the audited operating performance. While operations look stronger if we included these draws as operating revenue, the effect of the liquidation in assets has not allowed the balance sheet resources to grow. "We view the stagnation and the relati

Togo Assigned 'B/B' Foreign And Local Currency Ratings; Outlook Stable; 134th Rated Sovereign

We expect resilient economic growth in Togo will continue over the coming years, on the back of investments in key infrastructure and economic reforms. In our view, Togo's membership in the West African Economic and Monetary Union (WAEMU) provides a substantial buffer against external pressure, and a sturdy policy anchor. We are assigning our 'B/B' long- and short-term foreign and local currency ratings to Togo. The outlook is stable. Rating Action Overview On May 31, 2019, S&P Global Ratings assigned its 'B/B' long- and short-term foreign and local currency sovereign credit ratings to Togo. The outlook is stable. The transfer and convertibility (T&C) assessment is 'BBB-'. Togo is the 134th sovereign rated by S&P Global Ratings. Outlook The stable outlook on Togo balances our expectation of robust economic growth and fiscal consolidation against risks of weaker-than-expected economic and budgetary performance. We could raise th

Cook Springs Water Authority Inc., AL 2015A-B Water Revenue Bond Rating Raised To 'A+' On Improving Finances

NEW YORK (S&P Global Ratings) May 31, 2019--S&P Global Ratings raised its long-term rating to 'A+' from 'A' on the Cook Springs Water Authority Inc., Ala.'s series 2015A and taxable series 2015B water revenue bonds. The rating reflects our opinion of the authority's very strong enterprise and financial risk profiles. The outlook is stable. At the end of fiscal 2018, the authority had $2.3 million in revenue debt outstanding. "The upgrade follows consistently stronger financial metrics, in particular stronger all-in debt service coverage," said S&P Global Ratings credit analyst Erin Boeke Burke. Coverage has improved to 1.9x in 2017-2018, from 1.4x in 2015-2016 and 1.2x in 2012-2014. The authority has also continued to add to its liquidity. A net revenue pledge of the water system secures the bonds. The Cook Springs Water Authority serves a population of about 3,800 in unincorporated areas of St. Clair County known as Cook Springs a

LD Intermediate Holdings Inc. Ratings Placed On CreditWatch Positive Following Announced Merger

LD Intermediate Holdings Inc. (KLD) has announced it is merging with Pivotal Acquisition Corp. (Pivotal), a public special-purpose acquisition company. The reverse merger is expected to close in third-quarter of 2019 at which time the company will repay $136 million of debt and fund $75 million of cash to the balance sheet. Accordingly, we are placing our 'CCC+' issuer credit rating on KLD on CreditWatch with positive implications. We will resolve the CreditWatch placement when the merger closes. We expect to raise our rating possibly by one notch based on our reassessment of the company's credit measures and business prospects. NEW YORK (S&P Global Ratings) May 31, 2019--S&P Global Ratings today took the rating actions listed above. The CreditWatch placement reflects our view that the proposed merger of KLD and Pivotal could strengthen the company's financial risk profile beyond our expectations for the current rating. The company will likely use proceed

Pluto Acquisition I Inc. (d/b/a AccentCare Inc.) Assigned 'B-' Rating; Outlook Positive

U.S.-based Pluto Acquisition I Inc. (d/b/a AccentCare Inc.), a provider of skilled home health, at-home personal care, and hospice services, is being acquired by Advent International for a total purchase price of $875 million. We assigned AccentCare a 'B-' issuer credit rating. The outlook is positive. We also assigned a 'B-' issue-level rating and 3' recovery to the company's first-lien facility, consisting of a $40 million revolving credit facility and a $355 million first-lien term loan. The '3' recovery rating indicates our expectation for meaningful recovery (50%-70%; rounded estimate: 55%) of principal in the event of default. The company's $75 million asset-backed loan (ABL) revolver and $130 million second-lien term loan are unrated. The positive outlook reflects our expectation that the company is well positioned and will likely benefit from growing demand for home health services and the new reimbursement scheme at the Centers for Medi

Las Vegas McCarran International Airport Series 2019A Bonds Rated 'A+'; 2019B Bonds Rated 'AA-'

DALLAS (S&P Global Ratings) May 31, 2019--S&P Global Ratings assigned its 'A+' long-term rating to Clark County, Nev.'s $110.3 million series 2019A non-alternative minimum tax (AMT) airport system subordinate-lien revenue bonds; and its 'AA-' long-term rating to the $249.3 million senior 2019B non-AMT airport system senior revenue bonds, both issued for the Las Vegas McCarran International Airport (LAS) using its "U.S. And Canadian Not-For-Profit Transportation Infrastructure Enterprises" criteria. At the same time, S&P Global Ratings affirmed its: 'AA-' long-term rating on LAS' senior-lien debt; 'A+' long-term rating and underlying rating (SPUR) on the airport's subordinate-lien debt and passenger facility charge revenue debt; 'A+' long-term rating on LAS' junior subordinate-lien debt; 'A+' SPUR on the airport's jet aviation fuel tax bonds; and 'AA+' long-term rating, where appli

Various Rating Actions Taken On 32 Classes From 15 U.S. RMBS Transactions

We reviewed 32 ratings from 15 U.S. RMBS transactions, including 14 U.S. RMBS re-REMIC transactions, issued between 2003 and 2009. The transactions are backed by prime jumbo, subprime, HELOC, and Alternative-A collateral. Of the 32 ratings, we raised five, lowered four, affirmed 22, and discontinued one. CENTENNIAL (S&P Global Ratings) May 31, 2019--S&P Global Ratings today completed its review of 32 classes from 15 U.S. residential mortgage-backed securities (RMBS) transactions, including 14 resecuritized real estate mortgage investment conduit (re-REMIC) transactions, issued between 2003 and 2009. All of these transactions are backed by prime jumbo, subprime, home equity line of credit (HELOC), and Alternative-A collateral. The review yielded five upgrades, four downgrades, 22 affirmations, and one discontinuance. ANALYTICAL CONSIDERATIONS We incorporate various considerations into our decisions to raise, lower, or affirm ratings when reviewing the indicativ

Holladay, UT Series 2011 Bonds Upgraded To 'AA+' From 'AA' On Application Of Criteria; Outlook Stable

DALLAS (S&P Global Ratings) May 31, 2019--S&P Global Ratings raised its rating on the City of Holladay, Utah's series 2011 sales tax revenue improvement and refunding bonds to 'AA+' from 'AA'. The outlook is stable. "The upgrade reflects our view of the application of our priority-lien criteria, which factors in both the strength and stability of the pledged revenue, as well as the general credit quality of the municipality where taxes are distributed and collected--the obligor's creditworthiness," said S&P Global Ratings credit analyst Ann Richardson. (See our "Priority-Lien Tax Revenue Debt," published Oct. 22, 2018.) The series 2011 sales tax bonds are secured by a first-lien pledge on the levy of a 1% tax on all taxable sales of goods and services. Key credit considerations include: A strong economic base, coupled with very strong income levels with a local economy that has access to the greater Salt Lake metropolitan

Kaiser Permanente, CA Various Ratings Affirmed; Outlook Stable

SAN FRANCISCO (S&P Global Ratings) May 31, 2019--S&P Global Ratings affirmed its 'AA-' long-term ratings and underlying ratings (SPUR) on Kaiser Foundation Hospitals, Calif.'s existing debt and affirmed its 'AA-/A-1+' dual rating on its existing debt, issued by various entities and by Kaiser Permanente directly. At the same time, we affirmed our 'AA-' financial strength and issuer credit ratings on Kaiser Foundation Health Plans. The outlook, where applicable, is stable. The 'A-1+' short-term rating commercial paper (CP) program and the 'A-1+' component of the dual rating variable rate demand bonds reflects our view of the ample liquidity and sufficiency of the assets available to support the full and timely purchase of any bonds tendered upon the event of a failed remarketing. Kaiser Permanente has articulated clear procedures to address any remarketing shortfalls in a timely way. It also submits monthly reports to S&P Global

Richmond, CA Upgraded Three Notches To 'AA-' From 'A-' On Restored Budgetary Performance And Stronger Economy

SAN FRANCISCO (S&P Global Ratings) May 31, 2019--S&P Global Ratings raised its issuer credit rating (ICR) on Richmond, Calif., three notches to 'AA-' from 'A-'. At the same time, S&P Global Ratings raised its long-term rating and underlying rating (SPUR) on the Richmond Joint Powers Financing Authority's series 2009 and 2016 lease revenue bonds to 'A+' from 'BBB+'. S&P Global Ratings also assigned its 'A+' long-term rating to the Richmond Joint Powers Financing Authority, Calif.'s lease revenue refunding bonds, series 2019A and series 2019B issued on behalf of the city of Richmond. The outlook on all ratings is stable. "The upgrade is based on our view of the city's restored budgetary performance, with general fund surpluses reported in each of the past four fiscal years coupled with the adoption of several formalized policies and practices that has strengthened our view of the city's financial manageme

Kelda Finance (No. 3) Outlook Revised To Neg, 'BB-' Rating Affirmed; Yorkshire Water Services Issue Ratings Affirmed

With the next regulatory period set to begin in April 2020, operating company Yorkshire Water Finance Ltd. (YWS) is under pressure to reduce leverage given the introduction of the high leverage sharing mechanism by the regulator Ofwat. YWS continues to operate with relatively limited headroom above the levels we deem commensurate with the issue ratings on its debt. As we believe that YWS is committed to maintaining the current ratings on its debt, we see a possibility that YWS will benefit from a capital injection from Kelda Finance (No. 3) PLC (Kelda), the holding group above the ring-fenced structure, as YWS inferred in the updated business plan it submitted to the regulator in April 2019. The amount of the capital injection will only be decided when the draft and final determination published by Ofwat. Although this would protect the issue ratings on YWS's debt, hence the stable outlooks on those ratings, it could result in additional debt at the Kelda level. In addition, we

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