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Showing posts from April 15, 2019

America Movil S.A.B. de C.V.'s Proposed Senior Unsecured Notes Due 2029 And 2049 Rated 'A-'

MEXICO CITY (S&P Global Ratings) April 15, 2019--S&P Global Ratings assigned its 'A-' issue-level rating to America Movil S.A.B. de C.V.'s (AMX; global scale: A-/Negative/--; national scale: mxAAA/Stable/mxA-1+) proposed senior unsecured notes due 2029 and 2049. The proposed notes won't be secured by any of AMX's assets, properties, or its subsidiaries. AMX intends to use the net proceeds for the repayment of other debt.

Los Angeles County Metropolitan Transportation Authority, CA Revenue Bond Rating Raised To 'AA+' On Criteria Application

CENTENNIAL (S&P Global Ratings) April 15, 2019--S&P Global Ratings raised its long-term rating to 'AA+' from 'AA' on Los Angeles County Metropolitan Transportation Authority, Calif.'s (LACMTA) general revenue bonds outstanding. The outlook is stable. The rating action reflects the application of our "priority-lien" criteria, published Oct. 22, 2018, which factors in both the strength and stability of the pledged revenue, as well as LACMTA's general credit quality. The rating reflects what we view as: The very strong, broad, and diverse economy in Los Angeles County, which includes approximately 10.3 million residents; Very strong maximum annual debt service (MADS) coverage of 3.8x, per our calculations from fiscal 2018 sales tax revenues and including senior and subordinate debt, and our expectation that coverage will remain very strong; The historically low volatility of nationwide sales tax revenue, a view that extends to LACMTA'

Origin Energy Ltd. Upgraded To 'BBB' On Expectations Of Stronger Financial Metrics; Outlook Stable

Origin Energy Ltd. has strengthened its balance sheet and improved its overall financial position, backed by various credit supportive measures it has taken over the past few years. We expect Origin to generate strong positive free operating cash flows, which should help offset potential negative pressures the industry faces. On April 16, 2019, we raised our issuer credit rating on Origin to 'BBB' from 'BBB-' reflecting our expectations that the company will operate within its target ratio of debt-to-EBITDA in the range of 2.5x-3.0x. The outlook is stable, reflecting the company's strong market position as one of the three largest integrated utilities in the country. SYDNEY (S&P Global Ratings) April 16, 2019--S&P Global Ratings today took the rating actions listed above. The upgrade reflects our expectations that Origin will be able to operate with stronger financial metrics, particularly with a debt-to-EBITDA ratio in the range of 2.5x-3.0x, commens

GEO Ravenhall's Proposed Debt Assigned Preliminary 'A-' Long-Term Issue Rating; Outlook Stable

Australia-based limited-purpose entity, GEO Ravenhall Pty Ltd. (ProjectCo) is proposing to issue A$459.6 million of senior secured fixed-rate bonds due March 31, 2042, through its financing arm Ravenhall Finance Co. Pty Ltd. to refinance the existing bank loan, unwind interest rate hedges, and pay refinancing fees and transaction costs. ProjectCo was established to finance, design, build, and operate a new prison in Melbourne's west at Ravenhall. The project is backed by an availability-based agreement with the State of Victoria terminating in October 2042. On April 16, 2019, we assigned our preliminary 'A-' long-term rating to the proposed issuance, which reflects the underlying operational and financial stability of the project. The stable outlook reflects our expectation that the project will continue to move toward delivering a stable operational and financial performance, and that its operating costs will remain in line with our forecasts. SYDNEY (S&P Global

Impetus Funding Trust No.1 Repo Series No.1 RMBS Note Rating Affirmed

MELBOURNE (S&P Global Ratings) April 16, 2019--S&P Global Ratings today affirmed its 'AAA (sf)' rating on the class A residential mortgage-backed securities (RMBS) issued by Perpetual Trustee Co. Ltd. as trustee for Impetus Funding Trust No.1 Repo Series No.1. The rating affirmation follows the acquisition of additional loans to be funded by the issuance of A$28.7 million in class A notes and A$1.4 million in class B notes. The affirmation reflects: Our view of the credit risk of the underlying collateral portfolio, which has a weighted-average current loan-to-value ratio of 62.0% and weighted-average loan seasoning of 44.9 months. That a total of 98.1% of the properties in the portfolio are located in Victoria. We view clustered geographic distributions as being potentially at greater risk of being adversely affected by a localized economic downturn. We have applied adjustments in our credit assessment to account for this concentration. That the level

Jianyuan 2019-2 Residential Mortgage Backed Securities Assigned Preliminary 'AAA (sf)' Ratings

HONG KONG (S&P Global Ratings) April 16, 2019--S&P Global Ratings today assigned its preliminary 'AAA (sf)' ratings to the class A-1, class A-2, class A-3, and class A-4 notes to be issued by CCB Trust Co. Ltd. as trustee of the Jianyuan 2019-2 Residential Mortgage Backed Securities (see list). The notes are backed by a pool of residential mortgage loans that were originated by China Construction Bank Corp. (CCB). This is the third Jianyuan series transaction rated by S&P Global Ratings. The preliminary ratings assigned to the notes to be issued by Jianyuan 2019-2 Residential Mortgage Backed Securities reflect: The credit risk. The credit risk associated with the underlying mortgage pool and the credit support available are commensurate with our view of credit risk under a 'AAA' rating stress. Our assessment of credit risk takes into account originator CCB's underwriting track record and the characteristics of the underlying mortgage pool.

Debenhams Downgraded To 'D' On Administration Filing

U.K.-based department store retailer Debenhams filed for administration on April 9, 2019. Control of the group's operating subsidiaries has now passed to its lenders in a pre-packed sale. We have therefore lowered our long-term issuer credit rating on Debenhams PLC to 'D' from 'SD' (selective default). Our issue and recovery ratings on the group's 5.25% notes, due 2021 are unchanged at 'D' and '5', respectively. Our recovery rating indicates our expectation of minimal recovery (10%-30%; rounded estimate: 15%) for creditors. LONDON (S&P Global Ratings) April 16, 2019--S&P Global Ratings today took the rating actions listed above.The downgrade follows Debenhams's filing for administration on April 9, 2019. The group continues to operate, with only the publicly listed parent (Debenhams PLC) appointing administrators. These administrators immediately sold the parent's entire holding of the group's operating subsidiaries to

Sika Capital B.V.'s Proposed Eurobond Rated 'A-'

LONDON (S&P Global Ratings) April 16, 2019--S&P Global Ratings today assigned its 'A-' issue rating to Sika Capital B.V.'s €1 billion Eurobond to be issued during April. The proposed bond is made of two series, comprising €500 million 2027 notes and €500 million 2031 notes, issued by Sika Capital B.V. (a new issuer incorporated in the Netherlands) but unconditionally and irrevocably guaranteed by Sika AG (A-/Stable/A-2). The proceeds of the Eurobond will support the Swiss franc (CHF) 2.5 billion financing of Sika AG's acquisition of construction chemicals company Parex, announced on Jan. 8, 2019. The acquisition is also supported by Sika AG's CHF1.3 billion mandatory convertible bond issued in January 2019, which we assessed as having high equity content and assigned a 'BBB' issue rating. Following the issuance of the Eurobond, we expect the bridge facility secured with banks to fund the acquisition will be fully canceled.

Denver City & County's 2019A And B GO Bonds Assigned 'AAA' Rating; Other Ratings Affirmed

CENTENNIAL (S&P Global Ratings) April 15, 2019--S&P Global Ratings assigned its 'AAA' rating to Denver City & County's series 2019A and 2019B general obligation (GO) bonds. At the same time, S&P Global Ratings affirmed its 'AAA' rating on the city's GO bonds outstanding and its 'AA+' rating and underlying rating (SPUR) on various existing city certificates of participation (COPs) and lease-secured obligations. The outlook is stable. Denver is eligible to be rated above the sovereign because we believe the city can maintain better credit characteristics than the U.S. in a stress scenario. Under our criteria "Ratings Above The Sovereign: Corporate And Government Ratings—Methodology And Assumptions," published Nov. 19, 2013, U.S. local governments are considered to have moderate sensitivity to country risk. The city's locally derived revenues are the source of security for the bonds, and the institutional framework in the U.

Gwynedd Mercy University, PA Bond Rating Affirmed At 'BBB'

SAN FRANCISCO (S&P Global Ratings) April 15, 2019--S&P Global Ratings affirmed its 'BBB' rating on the Pennsylvania Higher Educational Facilities Authority's debt issued for the Gwynedd Mercy University (GMERCYU) and affirmed its 'BBB' rating on the series 2017PP2 Montgomery County Higher Education and Health Authority's revenue bonds issued on behalf of the Assn. of Independent Colleges and Universities of Pennsylvania Financing Program for GMERCYU. The outlook on all ratings is stable. As of fiscal year-end 2018, the university had $22.3 million in fixed-rate debt and $18.7 million in weekly variable-rate debt that has an associated letter of credit (LOC). We understand that the university plans to convert its weekly rate 2017V1 bonds, currently rated 'AA-/A-1+' and backed by an LOC, to term mode bonds with no credit enhancement for periods of two to five years. Upon conversion to term mode, the rating on the bonds will be 'BBB'. The

Argentine Real Estate Co. IRSA And Subsidiary IRCP 'B' Ratings Affirmed; Outlook Remains Stable

Argentina-based real estate company IRSA Inversiones y Representaciones S.A. (IRSA) has posted weaker credit metrics and tighter liquidity. As a result, on April 15, 2019, S&P Global Ratings downwardly revised IRSA's stand-alone credit profile (SACP) to 'b+' from 'bb-'. At the same time, it kept IRSA's subsidiary, IRSA Propiedades Comerciales S.A.'s (IRCP) SACP at 'bb'. We're also affirming our 'B' issuer credit and issue-level ratings on IRSA and IRCP. The stable outlook reflects our expectation that IRSA and IRCP will maintain a stable operating performance, with their strong positions in Argentina's shopping mall and premium office segments, while maintaining their credit metrics near current levels over the next year. It also reflects our expectation that IRSA will successfully refinance its 2019 bond and extend its debt maturity. BUENOS AIRES (S&P Global Ratings) April 15, 2019—S&P Global Ratings took rating ac

Forty-Five ‘D (sf)’ Ratings On 24 U.S. CMBS Transactions Discontinued

CENTENNIAL (S&P Global Ratings) April 15, 2019--S&P Global Ratings today discontinued its 'D (sf)' ratings on 45 classes of commercial mortgage pass-through certificates from 24 U.S. commercial mortgage-backed securities (CMBS) transactions (see list). We discontinued these ratings according to our surveillance and withdrawal policy. We had previously lowered the ratings on these classes to 'D (sf)' because of principal losses and/or accumulated interest shortfalls that we believed would remain outstanding for an extended period of time. We view a subsequent upgrade to a rating higher than 'D (sf)' to be unlikely under the relevant criteria for the classes within this review.

Madison Park Funding XXXV Ltd. Notes Assigned Preliminary Ratings

Madison Park Funding XXXV Ltd./Madison Park Funding XXXV LLC'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 preliminary ratings to the class A-1, B, C, D, and E notes. The preliminary ratings reflect our view of the transaction's collateral pool, credit enhancement, and legal structure, among other factors. NEW YORK (S&P Global Ratings) April 15, 2019--S&P Global Ratings today assigned its preliminary ratings to Madison Park Funding XXXV Ltd./Madison Park Funding XXXV LLC's 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 collateral quality tests. The preliminary ratings are based on information as of April 15, 2019. Subsequent information may result in the assign

Western Midstream Operating L.P. Ratings Placed On CreditWatch Positive On Announced Acquisition Of Andarko By Chevron

Chevron Corp. (CVX) and Anadarko Petroleum Corp. (APC) announced today that CVX will purchase APC, including its midstream limited partnership Western Midstream Operating L.P. (Western Midstream; formerly Western Gas Partners L.P.). Given our materially stronger credit rating on CVX (AA/Watch Neg/A-1+) compared with our rating on APC (BBB/Watch Pos/A-2), we think that there is a more than one-in-two chance that Western Midstream will receive enhanced group support following the close of the transaction, which would lead us to raise our rating on the company. Therefore, we are placing our 'BBB-' issuer credit rating and 'BBB-' issue-level ratings on Western Midstream on CreditWatch with positive implications. We expect to resolve the CreditWatch placement upon the close of the acquisition, at which point we could raise our rating on Western Midstream depending on the level of importance we think the partnership has in CVX's long term strategy. NEW YORK (S&

Anadarko Petroleum Corp. Ratings Placed On CreditWatch Positive On Acquisition By Chevron

Rating Action Overview U.S.-based integrated oil company Chevron Corp. has announced the acquisition of Anadarko Petroleum Corp. for $33 billion in cash and stock, $50 billion including the assumption of debt. We are placing all our ratings on Anadarko, including our 'BBB' issuer credit rating, on CreditWatch with positive implications, reflecting the likelihood of an upgrade following close of the acquisition, which we expect by the end of the year. The positive CreditWatch listing reflects the likelihood we would raise all our ratings on Houston-based Anadarko, including our 'BBB' issuer credit rating, following the close of its acquisition by Chevron (AA/Watch Neg/A-1+). We are likely to view Anadarko's assets as core to Chevron given their strategic fit into Chevron's development program, and we believe Chevron will guarantee Anadarko's debt. The transaction was approved by the boards of directors of both companies, but it is still subject to Anad

Chevron Corp. Ratings On CreditWatch Negative On Anadarko Acquisition

Chevron Corp. has entered into an agreement to acquire Anadarko Petroleum Corp. for $33 billion, $50 billion including the assumption of debt, to be funded with 75% common equity and 25% cash. Chevron also raised its annual share repurchase target to $5 billion per year from $4 billion. Chevron plans asset sales of $15 billion to $20 billion in 2020 through 2022, on top of a planned $3 billion in 2019, to support cash flow and debt repayment On April 15, 2019, S&P Global Ratings placed the 'AA' issuer credit and senior unsecured ratings on CreditWatch with negative implications, reflecting the possibility that expected debt leverage could exceed our expectations for the rating following the close of the acquisition. The 'A-1+' short-term and commercial paper ratings are unchanged, and will not change if the issuer credit rating is lowered. NEW YORK (S&P Global Ratings) April 15, 2019—S&P Global Ratings today took the rating actions listed above. The

Big Jack Holdings LP Outlook Revised To Stable On Improving Performance And Credit Metrics; Ratings Affirmed

Quick service restaurant (QSR) operator Big Jack Holdings LP recently reported improved operating performance and has continued to modestly repay debt, resulting in credit metrics better than our previous forecast. On April 15, 2019, S&P Global Ratings revised its outlook on Big Jack's to stable from negative. At the same time, we affirmed all ratings on the company, including the 'B' issuer credit rating. The stable outlook reflects our expectation that continued growth in sales and EBITDA will support moderate free cash flow generation and stable credit metrics, including leverage in the 5x area. NEW YORK (S&P Global Ratings) April 15, 2019--S&P Global Ratings today took the rating actions listed above. The outlook revision reflects our expectation that operating performance will continue to strengthen over the coming 12 months leading to a moderate improvement in credit metrics, including adjusted leverage in the low-5x area. We expect higher revenues a

Province of British Columbia Long-Term Rating Affirmed At 'AAA'; Outlook Remains Stable

After two years of rule in the Province of British Columbia (B.C.), the New Democratic Party's minority government has continued the tradition set by its predecessor of posting modest operating surpluses. Continued fiscal resolve, a wealthy economy, ample liquidity, and material budgetary flexibility remain the hallmarks of B.C.'s credit strength, counterbalancing the province's high debt-to-revenue ratio at the 'AAA' rating. As a result, we are affirming our ratings on B.C., including our 'AAA' long-term issuer credit rating. The stable outlook reflects our expectation that B.C.'s after-capital deficits and debt will rise moderately over the next two years, but the province's operating surpluses will remain sound. We also expect the local economy to expand moderately, with past policy measures continuing to gradually ease housing sector imbalances. Rating Action On April 15, 2019, S&P Global Ratings affirmed its ratings, including its &

St. John's University, NY Bond Rating Outlook Revised To Stable From Positive On Limited Available Resources

NEW YORK (S&P Global Ratings) April 15, 2019--S&P Global Ratings revised its outlook to stable from positive and affirmed its 'A-' long-term and underlying rating (SPUR) on New York State Dormitory Authority's (DASNY's) revenue bonds, issued for St. John's University. S&P Global Ratings also affirmed its 'AA/A-1' rating on the university's series 2008B-1 variable rate bonds. We base the long-term component of the series 2008B-1 bond rating on joint support assuming low correlation with Bank of America N.A., and base the short-term component of the rating solely on the letter of credit (LOC) provided by the bank. The LOC expires on Oct. 30, 2021. "The revision to stable reflects the university's available resource ratios, which while improved, remain weaker than the 'A' rating category medians and 'A' rated peers coupled with slightly weaker albeit positive full accrual operations that we expect to continue," s

Buffalo Municipal Water Finance Authority, NY Revenue Bond Rating Raised To 'A+' From 'A' On Very Strong Finances

DALLAS (S&P Global Ratings) April 15, 2019--S&P Global Ratings raised its rating on Buffalo Municipal Water Finance Authority, N.Y.'s water system revenue bonds outstanding to 'A+' from 'A'. At the same time, S&P Global Ratings assigned its 'A+' long-term rating to the authority's series 2019A water system revenue bonds and series 2019B water system revenue refunding bonds. The outlook is stable. "The rating reflects our view that the authority will be able to maintain its very strong financial profile, even as it embarks on a more aggressive renewal and replacement program during which it will essentially double its debt outstanding," said S&P Global Ratings credit analyst Theodore Chapman. The enterprise risk profile reflects our view of the system's: Location in Buffalo, which is the economic engine for western New York, and the second-largest city overall in the state, providing customers with a broad and diverse

Metropolitan Highway System, MA 'A+' Bond Ratings Affirmed

BOSTON (S&P Global Ratings) April 15, 2019--S&P Global Ratings has affirmed its 'A+' long-term rating and underlying ratings (SPUR) on the Massachusetts Department of Transportation's (MassDOT) senior-lien revenue bonds issued for the Metropolitan Highway System (MHS) using our "Rating Government-Related Entities" (GRE) criteria (published March 25, 2015 on RatingsDirect) and our "U.S. And Canadian Not-For-Profit Transportation Infrastructure Enterprises" (TIE) criteria (published March 12, 2018). The senior-lien bonds are secured by net revenues derived from the MHS toll road system, which, along with annual contract assistance payments from the commonwealth, support $1.7 billion in debt–approximately $893 million on the senior lien and $834 million on the subordinate lien. The outlook on the senior lien is stable. The subordinate lien benefits from a first claim on contract assistance payments and is rated 'AA/Stable' under our state c

S.A.C.I. Falabella Outlook Revised To Stable From Negative On Potentially Lower Leverage, ‘BBB+’ Ratings Affirmed

We expect Falabella's top-line and EBITDA growth to be modest, but consistent, in 2019 and 2020 due to e-commerce growth, new store openings, and relatively sound macroeconomic conditions in Peru, Colombia, and Chile. The recent capital increase of about $580 million would finance a portion of capital spending for the next two years; therefore, we expect debt to stay largely constant. On April 15, 2019, S&P Global Ratings revised its outlook on Chile-based retail and real estate company to stable from negative. We also affirmed our 'BBB+' global scale issuer credit and issue-level ratings on Falabella. The stable outlook reflects our expectation that the company will maintain net debt to EBITDA between 2.5x and 3.0x and funds from operations (FFO) to debt between 23% and 27% in the next two years. SAO PAULO (S&P Global Ratings) April 15, 2019—S&P Global Ratings took rating actions described above. We believe Falabella will be able to maintain leverage at