Skip to main content

Posts

Showing posts from March 26, 2019

Georgia Housing And Finance Authority Single Family Mortgage Bonds Assigned 'AAA' Rating

SAN FRANCISCO (S&P Global Ratings) March 26, 2019--S&P Global Ratings assigned its 'AAA' long-term rating to the Georgia Housing and Finance Authority's (GHFA) 2019 series A single family mortgage bonds. We also affirmed our 'AAA' long-term rating on all debt issued under GHFA's single family mortgage bond resolution (the 1976 general resolution). The outlook is stable. "The 'AAA' rating reflects our view of the strong credit quality of the collateral securing the bonds, the various prepayment speeds under which cash flow scenarios run, the strong asset management oversight, and the fully funded reserves and sufficient liquidity," said S&P Global Ratings credit analyst Aulii Limtiaco. The stable outlook reflects our opinion of the resolution's financial strength and the authority's strong oversight. A downward revision of the outlook or rating would partly depend on deterioration of the authority's parity an

Zhenro Properties Group Ltd.'s Proposed U.S. Dollar Senior Notes Assigned 'B-' Rating

HONG KONG (S&P Global Ratings) March 27, 2019--S&P Global Ratings today assigned its 'B-' long-term issue rating to a proposed issue of U.S. dollar denominated senior notes by Zhenro Properties Group Ltd. (B/Stable/--). The rating is subject to our review of the final issuance documentation. We rate the proposed senior notes one notch below the issuer credit rating on Zhenro to reflect structural subordination risk. As of Dec. 31, 2018, Zhenro's capital structure consists of Chinese renminbi (RMB) 37.9 billion in secured debt as well as RMB14.8 billion in unsecured debt. As such, the priority debt ratio from contractual subordination of Zhenro is about 72%, significantly above our notching-down threshold of 50%. The proposed issuance could slightly improve Zhenro's capital structure because the company intends to use the proceeds to refinance existing debt, including trust loans that are of higher cost and have shorter tenors. Since 2019, Zhenro has

QPCU Heroes Trust Repo Series No.1 RMBS Class A Note Rating Affirmed After Additional Note Issuance

MELBOURNE (S&P Global Ratings) March 27, 2019--S&P Global Ratings today affirmed its 'AAA (sf)' rating on the class A residential mortgage-backed securities (RMBS) issued by Perpetual Ltd. as trustee for QPCU Heroes Trust Repo Series No.1. The rating affirmation follows the issuance of an additional A$18.4 million in class A notes and A$0.3 million in class B notes, bringing the aggregate amount of notes issued to approximately A$100.6 million. The proceeds from the note issuance will be used to fund the acquisition of additional loans, as contemplated in the transaction structure. The affirmation reflects: Our view that the support provided to the class A notes in the form of lenders' mortgage insurance (LMI) (33.69% of the pool) and the subordination provided to the class A notes in the form of the unrated class B notes (4.06%) is sufficient to withstand the stresses commensurate with the rating. The LMI policies on the insured loans cover 100% of

RESIMAC Triomphe Trust – RESIMAC Premier Series 2019-1 Prime RMBS Assigned Preliminary Ratings

MELBOURNE (S&P Global Ratings) March 27, 2019—S&P Global Ratings today assigned its preliminary ratings to seven classes of prime residential mortgage-backed securities (RMBS) to be issued by Perpetual Trustee Co. Ltd. as trustee for RESIMAC Triomphe Trust - RESIMAC Premier Series 2019-1 (see list). RESIMAC Triomphe Trust – RESIMAC Premier Series 2019-1 is a securitization of prime residential mortgages originated by RESIMAC Ltd. The preliminary ratings reflect: Our view of the credit risk of the underlying collateral portfolio, including the fact that there is an initial revolving period of 16 months, during which new loans may be sold or substituted into the portfolio. Our view that the credit support is sufficient to withstand the stresses we apply. This credit support comprises note subordination for the rated notes and lenders' mortgage insurance for 15.8% of the portfolio, which covers 100% of the face value of these loans, accrued interest, and reason

Ratings On Japan’s BOT Lease Withdrawn On Company's Request

TOKYO (S&P Global Ratings) March 27, 2019--S&P Global Ratings today said it has affirmed its 'BBB' long-term and 'A-2' short-term issuer credit ratings on Japan-based leasing company BOT Lease Co. Ltd. (BOTL) and has withdrawn the ratings at the company's request. We also affirmed and then withdrew our 'BBB' long-term and 'A-2' short-term issue ratings on the company's senior unsecured debt. The outlook on the long-term issuer credit rating was negative at the time of withdrawal. The ratings on BOTL reflected our views that the company benefited from strong financial and operational ties with Mitsubishi UFJ Financial Group Inc. companies and that it is a midsize Japan-based leasing company with a geographically diversified business. Meanwhile, we also incorporated in the ratings other assessments, including: BOTL's capitalization, relative to risk, is moderately weak by international comparison, Its exposure to emerging

Ratings On Japan-Based ORIX JREIT Withdrawn At The Issuer's Request

TOKYO (S&P Global Ratings) March 27, 2019--S&P Global Ratings today said it has withdrawn its issuer credit rating on Japan-based ORIX JREIT Inc. at the issuer's request. At the time of withdrawal, the long- and short-term issuer credit ratings were 'A/A-1' and the outlook on the long-term issuer credit rating was stable. Trust test for rating action Output Data  Artificial intelligence (AI) rate-content,rate accuracy,dichotomous trust rate *NA Rating(n-1),R(n)-vRating(n),F(n+1) cT Correction *NA Rating(n-2),Rating(n-1),Rating(n) Bonferroni Correction *NA R,F,Q(f) Simulation type Multiple Rating/(nq+1)

Denbury Resources Inc. Downgraded To 'CCC+' From 'B-' Due To Rising Leverage; Outlook Negative

Denbury Resources Inc. announced the mutual termination of its merger agreement with Penn Virginia. We expect Denbury's leverage to exceed prior estimates under our $50 WTI oil commodity price assumptions without the benefit of the merger. In our view Denbury is dependent on favorable market conditions to meet its financial commitments over the long term, although it is not facing a credit trigger within the next 12 months. We lowered the issuer credit rating on Denbury to 'CCC+' from 'B-'. The outlook is negative. At the same time, we lowered the issue-level rating on the company's senior secured notes to 'B' from 'B+' with a '1' recovery rating, reflecting our expectation of a very high (90%-100%; rounded estimate: 95%) recovery in the event of a payment default. We also lowered the issue-level rating on the company's subordinated notes to 'CCC' from 'CCC+' with a '5' recovery rating, reflecting

Artesia, NM Water & Wastewater System Revenue Bond Outlook Revised To Negative On Volatile Revenue, Rising Expenses

DES MOINES (S&P Global Ratings) March 26, 2019--S&P Global Ratings revised its outlook to negative from stable and affirmed its 'A+' long-term rating on Artesia, N.M.'s series 2010 water and wastewater system revenue bonds. At the same time, S&P Global Ratings assigned its 'A+' long-term rating to the city's series 2019 water and wastewater system refunding revenue bonds. "The negative outlook reflects our view of the city's volatile revenue," said S&P Global Ratings credit analyst John Schulz. "The negative outlook further reflects our view of the city's increasing expenses over the past three audited fiscal years that have thinned its all-in debt service coverage to 1.0x in fiscal 2017 from 4.8x in fiscal 2015," Mr. Schulz added. The strong enterprise risk profile reflects our view of the city system's: Average economic indicators, as evident with median household median income level at 102% of th

ENMAX Corp. Outlook Revised To Negative On Announced Acquisition Of Emera Maine; Rating Affirmed

On March 25, 2019, Calgary-based utility operator ENMAX Corp. (ENMAX) announced that it will acquire Emera Inc.'s subsidiary Emera Maine, a regulated electric transmission and distribution utility in Maine, for about C$1.8 billion (US$ 1.3 billion) and assume about US$350 million of its debt. In addition, ENMAX is likely to finance most of the purchase price with debt. The parties expect the transaction to close by year-end 2019. We affirmed our ratings on ENMAX, including the 'BBB+' issuer credit rating, and revised our outlook from stable to negative, reflecting that the heavily debt-financed transaction will likely weaken financial measures. TORONTO (S&P Global Ratings) March 26, 2019—S&P Global Ratings today took the rating actions listed above. The outlook revision on ENMAX Corp. reflects that the acquisition of Emera Maine will likely be 100% financed with debt and, as a result, we expect in ENMAX's financial measures to deteriorate signi

Iron Mountain Inc. Outlook Revised To Stable From Negative, Ratings Affirmed On Improved Business Stability

We are revising our outlook on Boston-based global storage and information management services company Iron Mountain Inc. (IRM) to stable from negative and are affirming all of our ratings on the company and its subsidiaries, including the 'BB-' issuer credit rating. Despite IRM's persistently high adjusted debt leverage, the outlook revision reflects our expectation for steady operating performance and increasing revenue over the next two to three years. It also incorporates our view that IRM's revenue stability, scale, and certain operating metrics compare favorably with those at many higher-rated REITs. Accordingly, we are raising our adjusted debt to EBITDA downgrade threshold to 6.0x from the low-5x area. The stable outlook reflects our view that the company will make financial policy choices regarding its dividend and other investments over the next few years that will enable it to reduce its adjusted debt to EBITDA closer towards its financial pol

Emera Inc. And Subsidiaries 'BBB+' Ratings Affirmed; Outlooks Remain Negative

Emera Inc. announced a definitive agreement to sell its Emera Maine utility for a total enterprise value of about C$1.8 billion, including assumed debt at Emera Maine, to ENMAX Corp. The transaction is a part of Emera's previously announced three-year funding plan. On March 26, 2019, S&P Global Ratings affirmed its 'BBB+' issuer credit ratings on Emera Inc. and subsidiaries Nova Scotia Power Inc. (NSPI), TECO Energy Inc., Tampa Electric Co., Teco Finance Inc., and New Mexico Gas Co. Inc. The outlooks remain negative. The negative outlooks reflect our expectation of weaker financial measures for Emera that will persist through at least 2020 as the company executes its elevated capital spending plan funded with debt issuances within the group and proceeds from asset sales including Emera Maine. In our base-case scenario, we expect adjusted funds from operations (FFO) to debt to range from 11%-12% through 2019. TORONTO (S&P Global Ratings) March 26, 201

Lansing, MI, Michigan Transportation Fund Refunding Bond Rating Lowered To 'AA' From 'AA+' On Criteria Application

NEW YORK (S&P Global Ratings) March 26, 2019--S&P Global Ratings lowered its long-term rating to 'AA' from 'AA+' on Lansing, Mich.'s previously issued Michigan Transportation Fund (MTF) refunding bonds. The outlook is stable. The downgrade reflects the application of our "Priority-Lien Tax Revenue Debt" criteria (published Oct. 22, 2018), which factors in both the strength and stability of the pledged revenue as well as the general credit quality of Lansing (the obligor's creditworthiness or OC). The priority lien rating is constrained by the linkage to the OC. "Although the city's overall financial stability is strong, in our view, the city's economic indicators as well as its debt and contingent liability profile do not compare well with those of higher-rated peers," said S&P Global Ratings credit analyst Michael Mooney. The stable outlook reflects our expectation that, while pledged revenues will continue