Skip to main content


Showing posts from February 17, 2019

Italy-Based Paper Manufacturer Fabric (BC) S.p.A. (Fedrigoni) Downgraded To 'B' On Higher Risk Tolerance; Outlook Stable

We think premium paper manufacturer Fabric (BC) SpA (Fedrigoni) has tolerance for more aggressive leverage than we previously factored into the rating. Although Fedrigoni has not conducted any specific transaction, we think the company's financial policy could result in S&P Global Ratings adjusted debt to EBITDA rising above 5.0x on a sustained basis. We are lowering to 'B' from 'B+' our long-term issuer credit rating on Fedrigoni. We are lowering to 'B' from 'B+' the issue rating on the senior secured notes due 2024. The stable outlook reflects our expectation that the group's solid client relationships and leading premium niche positions should result in modest free operating cash flow generation. LONDON (S&P Global Ratings) Feb. 18, 2019--S&P Global Ratings today took the rating actions listed above. The downgrade reflects our view that Fedrigoni could adopt a more aggressive leverage policy than we previously fact

Three State Street Global Advisor VNAV Liquidity Funds Assigned 'AAAm' Ratings

CHICAGO (S&P Global Ratings) Feb. 18, 2019--S&P Global Ratings today assigned its 'AAAm' principal stability fund ratings (PSFRs) to three Ireland-domiciled short-term variable net asset value (VNAV) liquidity funds distributed by State Street Global Advisors Ireland Ltd. (SSgA). These short-term subfunds are part of the umbrella structure, State Street Liquidity PLC, an investment company with variable capital incorporated with limited liability in Ireland. The PSFR reflects our view of the creditworthiness of the funds' investments and counterparties, its investments' maturity structure, and management's ability to maintain the fund's net asset value, including the policies that it has implemented for this purpose. 'AAAm' is the highest PSFR we assign and indicates an extremely strong capacity to maintain principal stability and to limit exposure to principal losses caused by credit risk. The three short-term VNAV funds rated '

Tunghsu Group Co. Ltd. Downgraded To 'B-' On Ongoing Liquidity Pressure; Outlook Negative

Tunghsu is facing persistent liquidity pressure owing to its high refinancing needs amid tight funding conditions in China. Expansions into new segments have contributed to higher business risk and working capital requirements amid slowing economic growth in China. We lowered our long-term issuer credit rating on the China-based technology conglomerate to 'B-' from 'B'. We also lowered the issue level rating on the guaranteed senior unsecured notes to 'CCC+' from 'B-'. The negative outlook reflects Tunghsu's significant near-term refinancing needs over the next 12 months, in an unfavorable environment for most private enterprises in China. HONG KONG (S&P Global Ratings) Feb. 18, 2019--S&P Global Ratings said today that it has taken the rating actions mentioned above. We lowered our ratings on Tunghsu Group Co. Ltd. and its guaranteed U.S.-dollar notes because we believe the China-based technology conglomerate's liquidity i

Dubai-Based Damac Real Estate Development Downgraded To 'BB-' On Weak Market Prospects; Outlook Stable

The Dubai residential real estate market will likely weaken further in 2019 and 2020 because of oversupply. We expect this to result in weaker credit metrics for Damac Real Estate Development Ltd. We are therefore lowering our ratings on Damac to 'BB-' from 'BB'. The stable outlook stems from Damac's significant amount of presales and collections for key projects in Dubai, which we expect will sustain earnings and cash flow generation over the next two years, albeit at a much lower level than in the past. DUBAI (S&P Global Ratings) Feb. 18, 2019--S&P Global Ratings today lowered its long-term issuer credit rating on Dubai-based Damac Real Estate Development Ltd. to 'BB-' from 'BB'. The outlook is stable. We also lowered our issue rating to 'BB-' from 'BB' on the three sukuk trust certificates ($650 million with $270 million outstanding, $500 million, and $400 million) issued by Damac through three special purp

Rating On Virgin Australia Holdings Ltd.'s Senior Unsecured Notes Raised To 'B' On Improved Recovery Prospects

MELBOURNE (S&P Global Ratings) Feb. 18, 2019--S&P Global Ratings said today that it has raised its issue-level rating on Virgin Australia Holdings Ltd.'s senior unsecured notes to 'B' from 'B-', following our revision in the recovery rating on the debt to '5' from '6'. The upgrade reflects our view that the recovery prospects for Virgin Australia's senior unsecured creditors have improved over the past few years. We believe noteholders can now expect modest (10%-30%; estimate rounded down to 15%) recovery in our default scenario. This is the result of a reduction in the initial leverage ratio for new aircraft and an increase in the number and value of unencumbered aircraft, particularly highly marketable aircraft such as the Boeing 737. As a result, we assess the asset pool available to unsecured note holders in the event of a default has increased. In addition, over the past few years Virgin Australia has further entrenched