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Showing posts from April 16, 2019

Pepper I-Prime 2019-1 Trust Prime RMBS Assigned Ratings

MELBOURNE (S&P Global Ratings) April 17, 2019--S&P Global Ratings today assigned its ratings to eight classes of prime residential mortgage-backed securities (RMBS) issued by Permanent Custodians Ltd. as trustee of Pepper I-Prime 2019-1 Trust (see list). Pepper I-Prime 2019-1 Trust is a securitization of prime residential mortgages originated by Pepper HomeLoans Pty Ltd. The 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. The underwriting standard and centralized approval process of the seller, Pepper HomeLoans. The availability of a yield-enhancement reserve, amortization reserve, and overcollateralization amount, which will all be funded by excess spread to cover potential yield shortfalls and loss reimbursements and to repay principal on the notes at various stag

Sichuan Languang Development's Proposed Guaranteed U.S. Dollar Senior Unsecured Notes Rated 'B'

HONG KONG (S&P Global Ratings) April 17, 2019--S&P Global Ratings today assigned its 'B' long-term issue rating to a proposed issuance of U.S.-dollar-denominated senior unsecured notes by Hejun Shunze Investment Co. Ltd., an indirectly owned subsidiary of Sichuan Languang Development Co. Ltd. (Languang: B+/Stable/--). Languang unconditionally and irrevocably guarantees the notes. The company plans to use the proceeds for general corporate purposes. We rate Languang's senior unsecured notes one notch below the issuer credit rating because of significant subordination risks from secured debt. In our calculation, the proposed notes will rank behind a sizable amount of priority debt in Languang's capital structure. As of the end of 2018, Languang's reported debt consists of Chinese renminbi (RMB) 23.6 billion unsecured debt and RMB33.4 billion secured debt issued by the company and its subsidiaries, which is over our threshold of 50%. The issue rating is subj

Firstmac Mortgage Funding Trust No.4 Series 1PP-2019 Prime RMBS Assigned Ratings

MELBOURNE (S&P Global Ratings) April 17, 2019--S&P Global Ratings today assigned ratings to five of the six classes of prime residential mortgage-backed securities (RMBS) issued by Firstmac Fiduciary Services Pty Ltd. as trustee for Firstmac Mortgage Funding Trust No.4 Series 1PP-2019 (see list). The ratings reflect: Our view of the credit risk of the underlying collateral portfolio, including the fact that this is a closed portfolio, which means no further loans will be assigned to the trust after the closing date. Our view of the credit support that is sufficient to withstand the stresses we apply. Credit support for the rated notes comprises note subordination, excess spread, and lenders' mortgage insurance on 100% of the portfolio. Our expectation that the various mechanisms to support liquidity within the transaction, including a liquidity reserve equal to 1.2% of the outstanding note balance, and the principal draw function are sufficient to ensure ti

[SPSF] Ratings On SMBC RMBS Deals No. 26 And No. 32 Affirmed

Pools of housing loan receivables originated by Sumitomo Mitsui Banking Corp. back the transactions. We assume a cumulative default frequency for the mortgage loans currently outstanding of about 1%-2% under our base-case scenarios and about 11%-18% under our 'AAA' stress scenario. We consider the credit enhancement available for the rated debts to be sufficient to cover various risks such as credit risk under our 'AAA' stress scenario. We are affirming our ratings on all classes of trust certificates and bonds issued under these transactions. TOKYO (S&P Global Ratings) April 17, 2019-- S&P Global SF Japan Inc. (SPSF) today said it has affirmed its 'AAA (sf)' ratings on the class A1 and A2 senior trust certificates issued under the SMBC Residential Mortgage Trust Certificates No. 26 and class A1, A2, and alpha senior trust certificates issued under the SMBC Residential Mortgage Trust Certificates No. 32 residential mortgage-backed secur

FR Flow Control Midco Limited Assigned 'B' Issuer Credit Rating; Issue-Level Ratings Assigned; Outlook Negative

On Feb. 25, 2019, First Reserve Corp. agreed to acquire The Weir Group PLC's Flow Control division, forming the new entity FR Flow Control Midco Ltd. FR Flow Control is the parent of U.S.-based borrower FR Flow Control CB LLC. The transaction will be funded with senior secured credit facilities and new cash equity from both the financial sponsor and management. We are assigning a 'B' issuer credit rating to FR Flow Control. At the same time, we are assigning a 'B' issue-level rating and '3' recovery rating to the $40 million revolving credit facility (RCF) and $180 million first-lien term loan B. The '3' recovery rating indicates our expectation for meaningful recovery (50%-70%; rounded estimate: 55%) in a payment default. We are assigning a 'BB-' issue-level rating and '1' recovery rating to the $70 million first-lien term loan C. The '1' recovery rating reflects our expectation of very high recovery (90%-100%; rounded e

Little Lake Fire Protection District, CA Series 2019 Certificates Of Participation Assigned 'A+' Rating

CENTENNIAL (S&P Global Ratings) April 16, 2019--S&P Global Ratings assigned its 'A+' long-term rating to Little Lake Fire Protection District, Calif.'s $7.5 million series 2019 certificates of participation. The outlook is stable. The rating reflects our view of the district's: Strong market value per capita; Recent trend of general fund surpluses and very strong available reserves; and Limited operating expenditures. Partially offsetting these factors, in our opinion, is the district's adequate to low income indicators. Proceeds from the 2019 certificates will be used to finance the construction of a new fire station, capable of housing modern firefighting apparatus. "The stable outlook reflects our view of the district's steady growing economy, trend of stable finances, and strong reserve position in both available fund balance, and committed for capital needs," said S&P Global Ratings credit analyst David Mares. Should th

Coeur Mining Inc. Issuer Credit Rating Lowered To 'B' From 'BB-' On Higher Leverage, Reduced Production; Outlook Stable

Chicago-based gold and silver producer Coeur Mining Inc. (Coeur) has fallen short of our production increase expectations at its Silvertip mine due to mechanical issues at the processing facility. We now anticipate that debt leverage will remain close to 4x in 2019 as Coeur works to upgrade the Silvertip mill and increase its throughput. As a result, on April 16, 2019, S&P Global Ratings lowered its issuer credit rating on Coeur to 'B' from 'BB-'. We also lowered our issue-level ratings on Coeur's $250 million revolving credit facility due 2022 to 'BB-' from 'BB+', and on its $250 million senior unsecured notes due 2024 to 'B' from 'BB-'. The stable outlook reflects our expectation that adjusted leverage will remain close to 4x for 2019. We also expect nominal free cash flow, which is a factor in our revised assessment of the company's liquidity to adequate from strong. NEW YORK (S&P Global Ratings) April 16, 2019—S

Summit Academy, UT Charter School Revenue Bond Outlook Revised To Stable From Negative On Improved Finances

SAN FRANCISCO (S&P Global Ratings) April 16, 2019--S&P Global Ratings revised its outlook to stable from negative and affirmed its 'BBB-' long-term rating on the Utah Charter School Finance Authority's series 2007A charter school revenue bonds, issued on behalf of Summit Academy. At the same time, S&P Global Ratings assigned its 'BBB-' long-term rating and stable outlook to the academy's series 2019A charter school revenue and refunding bonds. "We revised Summit Academy's outlook to stable from negative to reflect its improved financial operations and stronger lease-adjusted maximum annual debt service coverage," said S&P Global Ratings credit analyst Robert Tu. "Additionally, the stable outlook reflects the academy's improved liquidity position, Mr. Tu added. The school will use the series 2019 bond proceeds to refund the existing series 2007 bonds, purchase the Bluffdale and Independence campuses, and finance a small

Seven Ratings Affirmed On Three Honda Auto Receivables Owner Trust Transactions

We reviewed three Honda Auto Receivables Owner Trust transactions backed by pools of prime auto loans originated and serviced by American Honda Finance Corp. We affirmed our ratings on seven outstanding classes from these transactions. The affirmations reflect our views regarding future collateral performance, the transactions' structures, and credit enhancement, among other factors. NEW YORK (S&P Global Ratings) April 16, 2019--S&P Global Ratings today affirmed its ratings on seven classes from three Honda Auto Receivables Owner Trust transactions backed by prime auto loans originated and serviced by American Honda Finance Corp. (see list). Today's rating actions reflect the transactions' collateral performance to date, our views regarding future collateral performance, the transactions' structures, and available credit enhancement. Additionally, we incorporated secondary credit factors, including credit stability, payment priorities under vari

Rock Community Fire Protection District, MO Ratings Raised To 'A+' From 'A' On Improved Reserves

CHICAGO (S&P Global Ratings) April 16, 2019--S&P Global Ratings raised its long-term rating on Rock Community Fire Protection District (FPD), Mo.'s general obligation (GO) debt outstanding and its issuer credit rating to 'A+' from 'A' with a stable outlook. At the same time, S&P Global Ratings assigned its 'A+' rating and stable outlook to the district's series 2019 GO refunding bonds. "The upgrade reflects our opinion of the district's improved reserve position, stemming from additional revenue from a new voter-approved property tax increase," said S&P Global Ratings credit analyst John Kenward. The series 2019 GO bonds are secured by unlimited ad valorem property taxes. Management will use series 2019 bond proceeds to refund the FPD's series 2013 GO bonds for savings. The district's finances benefit from consistent voter support, demonstrated by voters' approval of a sales tax in 2005, management's p

Marquette County Public School District No. 1, MI Outlook Revised To Stable From Negative On Better Available Reserves

NEW YORK (S&P Global Ratings) April 16, 2019--S&P Global Ratings revised the outlook on its 'A-' underlying rating for credit program on Marquette County Public School District No. 1 (Ishpeming), Mich.'s general obligation (GO) debt to stable from negative and affirmed the rating. The rating action reflects S&P Global Ratings' opinion of the district's available reserves remaining above low levels, coupled with the expectation of returning to structural balance in fiscal 2020. "We do not expect to change the rating during the two-year outlook period. However, if the district's actions are insufficient to return it to structural balance, resulting in available reserves decreasing to levels we consider low, we could lower the rating," said S&P Global Ratings credit analyst Michael Mooney. "If budgetary performance were to improve significantly, resulting in available reserves increasing to, and being sustained at, considerably h

Various Ratings Raised On 13 Bank Of The West- And BNP Paribas-Supported U.S. Public Finance Issues

NEW YORK (S&P Global Ratings) April 16, 2019--S&P Global Ratings raised its ratings on 10 U.S. public finance issues, supported by Bank of the West, and three issues, supported by BNP Paribas. (Please see the table.) The rating actions follow S&P Global Ratings' recent raising of the ratings on Bank of the West and BNP Paribas on April 5, 2019. (For more information, please see the article, titled "BNP Paribas And Most Core Banking Entities Upgraded To 'A+' On Build-Up Of Bail-In-Able Buffer; Outlook Stable," published April 5, 2019, on RatingsDirect.) Various Ratings Raised On 13 Bank Of The West- And BNP Paribas-Supported U.S. Public Finance Issues Issuer New rating Previous rating CUSIP Nos. Joint-support entity California letter of credit US$125.0 mil commercial paper nts ser A8; B8 A-1 A-2 N/A N/A Los Angeles Cnty Cap Asset Lsg Corp Lease Revenue Obligation Commercial Paper Notes, Series A (Tax Exempt Governmental) US$50 mil A-1 A-2 N/A

Trinidad Petroleum Holdings Limited's New Senior Secured Notes Rated 'BB', Issuer Rating Still On CreditWatch Negative

On April 16, 2019, S&P Global Ratings assigned its 'BB' issue-level rating to Trinidad Petroleum Holdings' (TPH's) proposed 9.75% senior secured notes due 2026 for up to $612.5 million, following the company's announcement of an offer to exchange these notes and cash for the outstanding 2019 and 2022 notes. We assess the exchange offer as opportunistic, rather than distressed, because we believe that there's a very high likelihood that the government will provide extraordinary support if TPH needs to meet the $850 million principal payment on its 2019 notes. We have also kept our 'BB' issuer credit rating on TPH on CreditWatch with negative implications, where we placed it on Jan. 16, 2019. The negative CreditWatch listing continues to reflect the risk of reassessment of extraordinary government support to a weaker category. This could occur if TPH fails to perform the exchange and the government fails to take timely measures to support the compa

Rating Affirmed On Series 3 From Nuveen Municipal Credit Income Fund

NEW YORK (S&P Global Ratings) April 16, 2019--S&P Global Ratings today affirmed its short-term 'A-1+' rating on series 3 from Nuveen Municipal Credit Income Fund. The short-term rating on series 3 reflects the short-term rating on the underlying liquidity provider, the Toronto-Dominion Bank. The short-term rating addresses the expectation of the timely repayment of the shares' liquidation preferences in the event of an optional or mandatory tender. We will continue to review whether, in our view, the rating assigned to the notes remains consistent with the credit enhancement available to support them, and we will take rating actions as we deem necessary.

Ratings Affirmed On Three Series From Nuveen AMT-Free Municipal Credit Income Fund

NEW YORK (S&P Global Ratings) April 16, 2019--S&P Global Ratings today affirmed its short-term 'A-1' ratings on series 2, 5, and 6 from Nuveen AMT-Free Municipal Credit Income Fund. The short-term rating on each series reflects the short-term ratings on the underlying liquidity providers: JPMorgan Chase Bank N.A. for series 2, Societe Generale for series 5, and Sumitomo Mitsui Banking Corp. for series 6. The short-term ratings address the expectation of the timely repayment of the shares' liquidation preferences in the event of an optional or mandatory tender. We will continue to review whether, in our view, the ratings assigned to the notes remain consistent with the credit enhancement available to support them, and we will take rating actions as we deem necessary.

Sunshine Skyway, FL, 2019A Revenue Bonds Rated 'A'; Outlook Stable

CENTENNIAL (S&P Global Ratings) April 16, 2019--S&P Global Ratings assigned its 'A' long-term underlying rating to the State of Florida Department of Transportation's (FDOT) $88.14 million series 2019A Sunshine Skyway revenue bonds, using its " U.S. And Canadian Not-For-Profit Transportation Infrastructure Enterprises " (TIE) criteria. The outlook is stable. Sunshine Skyway Bridge's net revenues secure the bonds. As a result, the rating on bonds reflects our opinion of the bridge's strong enterprise risk and financial risk profiles. Our enterprise risk profile assessment reflects the important role the single bridge plays in the road network, saving passenger and commercial vehicles significant time traveling to or from the expanding and popular Tampa-St. Petersburg-Clearwater and North Port-Sarasota-Bradenton metropolitan areas. Our financial risk profile assessment reflects the bridge's historically favorable traffic trends and toll revenu

Rating Actions Taken On Three Puerto Rican Banks As A Result Of Economic Recovery And Financial Improvements

The positive rating actions on First Bank Puerto Rico, OFG Bancorp, and Popular Inc. primarily reflect better economic conditions than we initially anticipated following Hurricane Maria as well as financial improvements made by the three Puerto Rican banks' we rate, which include continued derisking of balance sheets, rising capital ratios, better funding profiles, and higher profitability, among other factors. To a large extent, these rating actions also reflect our view that the uncertainty associated with loan moratoriums following Hurricane Maria has substantially receded and credit quality so far has been in line with what it was before the hurricane. In addition, we believe ongoing post-hurricane recovery efforts such as private insurance payments and federal aid will continue to provide a meaningful boost to the local Puerto Rican economy, offsetting ongoing infrastructure, economic, and fiscal challenges, including austerity and outmigration. We are raising o

Fort Bend County Municipal Utility District No. 149, TX GO Outlook Revised To Stable From Negative On Reduced Risk

CENTENNIAL (S&P Global Ratings) April 16, 2019--S&P Global Ratings revised its outlook on Fort Bend County Municipal Utility District (MUD) No. 149, Texas' general obligation (GO) debt to stable from negative. We also affirmed our 'BBB' rating on the debt. The outlook is stable. "The rating action reflects our opinion that damage within the district from Hurricane Harvey did not have a negative impact on the MUD's rating," said S&P Global Ratings credit analyst Benjamin Burrows. We assigned the negative outlook due to reports that 570 homes, or 48% of the MUD's total homes , experienced flooding ranging from a few inches to 2 feet. Flooding occurred when rainfall from Harvey inundated the pump station for the Steep Bank Creek watershed. However, based on the updated fiscal 2019 assessed valuation (AV), the MUD only saw a modest AV decline of 3.4% and finances were not affected. District officials report that most of the affected ho

Mechanicsburg Borough, PA 2010, 2015 GO Bond Rating Raised To 'AA-' On Improved Economy, Flexibility

NEW YORK (S&P Global Ratings) April 16, 2019--S&P Global Ratings raised its underlying rating to 'AA-' from 'A+' on Mechanicsburg Borough, Pa.'s series 2010 and 2015 general obligation (GO) bonds. The outlook is stable. "We raised the rating due to the borough's improved economy and budgetary flexibility, coupled with its sustained very strong liquidity, very strong debt and contingent liability, and strong budgetary performance," said S&P Global Ratings credit analyst Moreen Skyers-Gibbs. In recent years, the borough has operated with positive net operating results, averaging more than 2% of expenditures in the general and across all governmental funds. This reflected strong revenue growth from stable real estate taxes due to ongoing economic development and stability, increase earned income tax, and building permit fees. Furthermore, the borough has become more prudent with its budgetary assumptions, by taking a more conservative appro

Companhia de Saneamento Basico do Estado de Sao Paulo's R$1.5 Billion Debentures Rated 'brAAA' On National Scale

SAO PAULO (S&P Global Ratings) April 16, 2019--S&P Global Ratings assigned a 'brAAA' Brazil national scale issue-level rating to Companhia de Saneamento Basico do Estado de Sao Paulo's (SABESP; global scale: BB-/Stable/--; national scale: brAAA/Stable/--) proposed 23rd debentures issuance. These debentures will total up to R$1.5 billion in two series, with final maturity in 2027, and incorporates R$750 million in firm commitment from its arrangers. SABESP will use the proceeds for refinancing purposes and strengthening its cash position. Issue Ratings - Subordination Risk Analysis The unsecured rating on the proposed issuance is at the same level as the issuer credit ratings in the Brazilian national scale, because all the debt is issued at the operating level. We note that just 20% of SABESP's debt is secured; therefore, unsecured creditors are not in material disadvantage to the secured creditors. As of Dec. 31, 2018, SABESP's capital structure consis