Skip to main content

Posts

Showing posts from February 18, 2019

GCL New Energy Holdings Ltd. Downgraded To 'B+' On Heightened Business Risk; Notes Lowered To 'B'; Outlook Negative

We expect GNE's capability to generate cash flows will be strained over the next 12 months due to delays in renewable subsidy payments and rising interest expenses. We have revised GNE's group status to moderately strategic from strategically important, in consideration of GNE's divestment strategy which will dilute its contribution to the parent group GCL-Poly. We expect the parent group to provide limited support to GNE given its own financial strength has also significantly weakened due to overcapacity in China's solar material sector. On Feb. 19, 2019, S&P Global Ratings lowered its long-term issuer credit rating on GNE to 'B+' from 'BB-'. At the same time, we lowered the issue rating on the company's senior unsecured notes to 'B' from 'B+'. We removed the ratings from CreditWatch, where they were placed with negative implications on Aug. 23, 2018. The negative outlook on GNE reflects our view that the company&#

Mexico Generadora de Energia, S. de R.L. 'BBB+' Senior Secured Debt Rating Affirmed; Outlook Remains Stable

We expect México Generadora de Energía, S. de R.L. (MGE), to continue to show stable and predictable cash flows, backed by a fixed capacity contract with Mexicana del Cobre and Buenavista del Cobre mines, resulting in Debt Service Coverage Ratios (DSCR) levels around 1.40x. Therefore, we are affirming our 'BBB+' long-term debt rating on MGE's $575 million senior secured bonds. The stable outlook on MGE reflects that the project depends on the ratings on Minera Mexico, who is the ultimate guarantor on the payments of the project. The outlook also reflects our expectations of continued stable and predictable cash flows in the next 12 to 24 months. MEXICO CITY (S&P Global Ratings) Feb. 18, 2019--S&P Global Ratings today took the rating actions listed above. The project consists of two natural gas-fired electric facilities located in the state of Sonora, Mexico, with a nominal capacity of about 258 megawatts (MW) per plant. The capacity of both plants is

Logan Property Holdings Co. Ltd.'s Proposed U.S. Dollar Senior Unsecured Notes Assigned 'B+' Rating

HONG KONG (S&P Global Ratings) Feb. 19, 2019--S&P Global Ratings today assigned its 'B+' long-term issue rating to a proposed issue of U.S.-dollar-denominated senior unsecured notes by Logan Property Holdings Co. Ltd. (BB-/Positive/--). The China-based developer intends to use the proceeds to refinance its existing debt. The issue rating is subject to our review of the final issuance documentation. We rate the notes one notch below the issuer credit rating on Logan to reflect structural subordination risk. As of June 30, 2018, Logan's capital structure of Chinese renminbi (RMB) 60 billion consists of RMB12.7 billion secured debt and about RMB32 billion unsecured debt at subsidiaries. As such, Logan's priority debt ratio is about 74%, which is significantly above our notching-down threshold of 50%. In our view, Logan will improve its financial leverage over the next 12 months, given that the company's sales execution in 2018 exceeded our expect

Sun Hung Kai Properties Ltd.'s Proposed MTN Drawdown Assigned 'A+' Rating

HONG KONG (S&P Global Ratings) Feb. 19, 2019--S&P Global Ratings today assigned its 'A+' long-term issue rating to a proposed drawdown of senior unsecured notes from the US$7 billion medium-term note (MTN) program guaranteed by Sun Hung Kai Properties Ltd. (SHKP; A+/Stable/--). Sun Hung Kai Properties (Capital Market) Ltd. will issue the notes. The issue rating is subject to our review of the final issuance documentation. We equalize the issue rating with the issuer credit rating on SHKP because we do not see significant subordination risk in the company's capital structure. As of June 30, 2018, SHKP's capital structure consists of Hong Kong dollar (HK$) 1.35 billion in secured debt and HK$91.4 billion in unsecured debt. Of this, a certain amount of unsecured debt is at the subsidiary level. However, the company's priority debt ratio is still well below 50%. In our view, the issuance will have a limited impact on SHKP's leverage because the

SK E&S Co. Ltd. Outlook Revised To Negative On Aggressive Shareholder Return Policy; 'BBB' Rating Affirmed

SK E&S' dividend announcement for 2018 indicates that the company's shareholder return policy has become more aggressive than our previous expectation. The Korea-based energy services company used most of its sizable cash proceeds from disposing of a 49% stake in its power plant subsidiary to reward shareholders. Its debt-to-EBITDA ratio is likely to hover around our downgrade trigger of 4.0x over the next 24 months. On Feb. 19, 2019, S&P Global Ratings revised its outlook on SK E&S to negative from stable. At the same time, we affirmed our 'BBB' long-term issuer credit rating on SK E&S and our 'BB+' long-term issue rating on the company's subordinated perpetual capital securities. The negative outlook reflects our view that the company has a narrow headroom to maintain the current rating over the next 24 months. HONG KONG (S&P Global Ratings) Feb. 19, 2019--S&P Global Ratings today took the rating actions listed abov

Ratings On Atlas Iron Ltd. Withdrawn At Issuer's Request

SYDNEY (S&P Global Ratings) Feb. 19, 2019--S&P Global Ratings said today that it has withdrawn its 'CCC' long-term issuer credit rating on Australian mining company, Atlas Iron Ltd. (CCC/Watch Pos), at the company's request. The company has been acquired by the Hancock Group, and we note that a subsidiary of the Hancock Group has fully repaid Atlas Iron's A$83 million term loan B holders in late 2018.

Pepper Residential Securities Trust No.23 RMBS Assigned Preliminary Ratings

MELBOURNE (S&P Global Ratings) Feb. 19, 2018--S&P Global Ratings today assigned its preliminary ratings to nine classes of nonconforming and prime residential mortgage-backed securities (RMBS) to be issued by Permanent Custodians Ltd. as trustee of Pepper Residential Securities Trust No.23 (see list). Pepper Residential Securities Trust No.23 is a securitization of nonconforming and prime residential mortgages originated by Pepper HomeLoans Pty Ltd. The preliminary ratings reflect: Our view of the credit risk of the underlying collateral portfolio, including our view that the credit support is sufficient to withstand the stresses we apply. The credit support for the rated notes comprises note subordination. Subordination provided to the 'AAA (sf)' rated notes is in excess in our opinion of the minimum 'AAA (sf)' level of credit support. The underwriting standard and centralized approval process of the seller, Pepper Homeloans. The availability of

Curacao Long-Term Sovereign Ratings Lowered To 'BBB+' On Increased Fiscal Pressures; Outlook Is Stable

Foreign Currency: BBB+/Stable/A-2 Local Currency: BBB+/Stable/A-2 For further details see Ratings List. OVERVIEW Increased uncertainty about "La Isla" refinery's future has lowered our expectations for Curacao's economic growth and fiscal performance in the coming years. As a result, we are lowering our long-term foreign and local currency ratings on Curacao to 'BBB+' from 'A-' and affirming our short-term foreign and local currency ratings at 'A-2'. We are also revising down our transfer and convertibility assessment to 'BBB+' from 'A-'. Our ratings on Curacao continue to reflect its strong links to the Netherlands, a relatively strong external position, and the government's strong net external asset position (because of pension fund assets). The outlook is stable. RATING ACTION On Feb. 18, 2019, S&P Global Ratings lowered its long-term foreign and local currency ratings on Curacao to 'BBB+'

Yapi ve Kredi Bankasi A.S. 'B+/B' Ratings Affirmed After Strengthening Capitalization; Outlook Remains Stable

In January 2019, Turkey-based Yapi ve Kredi Bankasi A.S. (Yapi) issued $650 million Perpetual Additional Tier 1 capital notes, which we classify as having intermediate equity content. The issuance will strengthen Yapi's capital position, although not to the extent that we would raise our rating on the bank. We are therefore affirming the 'B+/B' long- and short-term issuer credit ratings on Yapi. We are also affirming the 'trA+/trA-1' Turkey national scale ratings on the bank. The stable outlook balances the downside risks we see on the bank's financial profile, including pressure on its liquidity and asset quality, with the benefit of potential support from its parent company, UniCredit. PARIS (S&P Global Ratings) Feb. 18, 2019--S&P Global Ratings said today that it affirmed its 'B+/B' long- and short-term issuer credit ratings on Turkey-based Yapi ve Kredi Bankasi (Yapi) as well as the 'trA+/trA-1' long- and short-term n