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Showing posts from April 18, 2019

[SPSF] PACK1 Transaction Assigned 'AAA (sf)' Ratings

A pool of condominium investment loan receivables will back the PACK1 senior beneficial interests issued under the transaction. Our cash flow analysis indicates that, under our 'AAA' stress scenarios, interest payments and principal repayments would not be delayed. We are assigning our 'AAA (sf)' rating to the PACK1 senior beneficial interests issued under this transaction. TOKYO (S&P Global Ratings) April 19, 2019--S&P Global SF Japan Inc. (SPSF) today said it has assigned its 'AAA (sf)' rating to the ¥108.0 billion PACK1 senior beneficial interests issued under the PACK1 transaction. Under the transaction, a pool of condominium investment loan receivables will be transferred to a trustee that will back the senior trust certificates. This transaction provides updated loan-by-loan data in the surveillance period. Our ratings reflect the following: We assume a foreclosure frequency for the condominium investment loans outstanding of abou

Bavarian Sky China Leasing 2019-1 Assigned Ratings

HONG KONG (S&P Global Ratings) April 19, 2019--S&P Global Ratings today assigned its ratings to the asset-backed notes issued by COFCO Trust Co. Ltd. as trustee of Bavarian Sky China Leasing 2019-1 (see list). This is the first auto finance lease receivables securitization transaction originated by BMW Group under the name of its majority-owned subsidiary, Herald International Financial Leasing Co. Ltd. (Herald Leasing), which also acts as the servicer. The collateralized assets are lease receivables related to vehicles leased to retail customers (the lessees) to finance the purchase of new cars manufactured by Bayerische Motoren Werke Aktiengesellschaft (BWM AG), including those made by local joint ventures. The ratings reflect the following factors: The credit risk associated with the underlying collateral portfolio and the credit support available are commensurate with our view of credit risk under 'A+' and 'A' rating stresses. Our assessment of

MDC Partners Inc. 'B' Issuer Credit Rating Affirmed On Capital Structure Shifts; Outlook Stable

U.S. advertising agency MDC Partners Inc. recently amended its credit agreement to provide increased covenant cushion, and received a strategic investment from Stagwell Group, which the company will use to pay down its revolver balance and fund operating cash outflows, leading to a decline in adjusted leverage. S&P Global Ratings believes MDC's business risk has weakened relative to its larger peers given the increased competitive dynamics of the overall ad industry, yet this is somewhat offset by its recently improved credit metrics and liquidity. We are affirming all of our ratings on MDC Partners, including the 'B' issuer credit rating and the 'B' issue-level rating on the senior unsecured notes. The stable outlook reflects our expectation that MDC will continue to secure net new business wins and generate organic growth rates of between 2%-4% over the next 12 months, while keeping leverage in the low-5.0x area and free operating cash flow (FOCF) to debt

Preliminary Ratings Assigned To Trinitas CLO V Ltd. In Connection With Proposed Refinancing

We reviewed Trinitas CLO V Ltd., which, based on its proposed supplemental indenture, is expected to refinance its class A, B-1, B-2, C and D notes on April 25, 2019, through an optional redemption and replacement note issuance. After analyzing the proposed changes to the transaction, we assigned our preliminary ratings to the replacement class A-R, B-1R, B-2R, C-R, and D-R notes. The original class A, B-1, B-2, C, and D notes are expected to be fully redeemed with the proceeds from the replacement note issuance on the April 25, 2019, refinancing date. The class E notes are not being refinanced. NEW YORK (S&P Global Ratings) April 18, 2019--S&P Global Ratings today assigned its preliminary ratings to the class A-R, B-1R, B-2R, C-R, and D-R replacement notes from Trinitas CLO V Ltd., a collateralized loan obligation (CLO) that originally closed in September 2016 that is managed by Trinitas Capital Management LLC. The replacement notes will be issued via a propo

Kendal At Oberlin, OH Revenue Bond Rating Raised To 'A' On Ongoing Operating Surpluses, Solid Financial Profile

CENTENNIAL (S&P Global Ratings) April 18, 2019--S&P Global Ratings raised its long-term rating to 'A' from 'A-' on the Lorain County Port Authority, Ohio's series 2013A health care facilities revenue bonds, issued for Kendal at Oberlin (Kendal), a continuing care retirement community (Life Plan Community). The outlook is stable. "The raised rating reflects our view of Kendal at Oberlin's consistent operating performance and solid financial profile, including a sound balance sheet, particularly favorable liquidity and financial flexibility," said S&P Global Ratings credit analyst Wendy Towber. "Kendal's ability to generate annual operating surpluses that meet or exceed budget is a credit strength in our view as it both reduces the reliance on non-operating income, which can be inconsistent and demonstrates strong business practices of monitoring performance against budgeted goals throughout the year," Ms. Towber added. The

Perris Union High School District, CA's GO Bonds Assigned 'A+' Rating; COPs Rated 'A'

CENTENNIAL (S&P Global Ratings) April 18, 2019--S&P Global Ratings assigned its 'A+' long-term rating to Perris Union High School District, Calif.'s election of 2018 series A general obligation (GO) bonds, and its 'A' long-term rating and to the district's 2019 certificates of participation (COPs). At the same time, S&P Global Ratings affirmed its 'A+' underlying rating (SPUR) on the district's existing GO debt. The outlook is stable. "The ratings reflect our opinion of the district's low to adequate income indicators, steadily increasing average daily attendance and maintenance of good available fund balances, offset by the area's high unemployment rate and the district's high overall net debt per capita," said S&P Global Ratings credit analyst Angel Bacio. The stable outlook reflects our opinion of the district's steadily increasing average daily attendance and good available general fund reserves. We

Sheridan Fund II Ratings Lowered To 'CCC-' From 'CCC+' On Liquidity Pressures; Outlook Negative

Sheridan Fund II is experiencing liquidity pressures from minimal working capital and elevated interest expenses. The fund has begun discussions with its creditor group to address what we view as an unsustainable capital structure. As a result, we are lowering our issuer credit ratings on the Sheridan Fund II to 'CCC-' from 'CCC+'. We are also lowering the issue ratings on the revolving credit facility and the senior secured term loan to 'CCC+' from 'B', and the issue rating on the subordinated term loan to 'CCC' from 'B-'. The negative outlook reflects our view that we could lower the ratings if the fund enters into a restructuring agreement with its debtholders or if the company defaults on its interest payments as they come due. NEW YORK (S&P Global Ratings) April 18, 2019--S&P Global Ratings said today it lowered its long-term issuer credit ratings on Sheridan Production Partners II-A, L.P., Sheridan Investment Partners

Envigo Holdings Inc. Ratings Placed On CreditWatch Positive On Covance Transaction, Probable Deleveraging

Envigo Holdings Inc. and LabCorp's CRO business that operates under the name Covance announced a business swap transaction, in which Envigo receives LabCorp's research models business (and $485 million in cash) and LabCorp receives Envigo's nonclinical contract research services business. We believe it is probable that Envigo will use proceeds to repay most if not all of its debt. We are placing all of our ratings on Envigo, including the 'CCC+' long-term issuer credit rating on CreditWatch with positive implications. NEW YORK (S&P Global Ratings) April 18, 2019--S&P Global Ratings today took the rating actions listed above. The CreditWatch placement follows the announcement that Envigo and LabCorp will exchange businesses; Envigo will receive LabCorp's research models business (and $485 million in cash) and LabCorp will receive Envigo's nonclinical contract research services business. We expect to resolve the CreditWatch placement followin

Smart & Final Stores Inc. 'B' ICR Placed On CreditWatch Negative On Announcement Of Going-Private Transaction

Apollo Global Management LLC is acquiring Smart & Final Stores Inc. (SFS), a value-oriented food retailer operating under the Smart & Final and Smart Foodservice banners, and plans to turn the company back into a privately held business. We expect that Apollo will increase SFS' leverage to fund the acquisition, as is typical with private-equity sponsors, which will weaken the company's credit metrics. Therefore, we are placing our 'B' issuer credit rating on SFS on CreditWatch with negative implications. The issue-level ratings are not affected as we expect them to be repaid. The CreditWatch reflects the potential for the ratings to be lowered upon close of the transaction, or when more details around the pro forma capital structure for the company are announced. We intend to resolve the CreditWatch after we receive final details of the company's capital structure and business strategy under its new ownership. On April 18, 2019, S&P Global Ratings

Mulcair Securities DAC Irish RMBS Notes Assigned Ratings

One or more of the credit ratings was assigned by deviating from S&P Global Ratings' published criteria. Mulcair Securities DAC's issuance is an RMBS transaction backed by first-lien Irish buy-to-let mortgages. We assigned our ratings to the class A, B-Dfrd, C-Dfrd, D-Dfrd, and E-Dfrd notes. The ratings reflect our view of the transaction's payment structure, cash flow mechanics, and the results of our cash flow analysis, among other factors. DUBLIN (S&P Global Ratings) April 18, 2019--S&P Global Ratings has assigned its credit ratings to Mulcair Securities DAC's (Mulcair's) class A, B-Dfrd, C-Dfrd, D-Dfrd, and E-Dfrd notes. At closing, Mulcair will also issue unrated class Z notes (see list). Our ratings address the timely payment of interest and the ultimate payment of principal on the class A notes. Our ratings on the class B-Dfrd, C-Dfrd, D-Dfrd, and E-Dfrd notes address the ultimate payment of interest and principal on these notes

Wofford College, SC's Series 2019 Economic Development Revenue Bonds Assigned 'A-' Rating

SAN FRANCISCO (S&P Global Ratings) April 18, 2019--S&P Global Ratings assigned its 'A-' rating to the South Carolina Jobs Economic Development Authority's series 2019 economic development revenue bonds, issued for Wofford College. At the same time, S&P Global Ratings affirmed its 'A-' rating on the outstanding South Carolina Jobs Economic Development Authority and South Carolina Educational Facilities Authority's outstanding revenue bonds, issued for Wofford College. The outlook remains stable. "The rating reflects our view of Wofford's strong enterprise and financial profiles," said S&P Global Ratings credit analyst Phillip Pena. We assessed Wofford's enterprise profile as strong, characterized by sound enrollment, healthy demand with improving selectivity and steady matriculation, and solid fundraising, evidenced by recent success in securing notable gifts to support planned capital projects. We also assessed the college&

Revere Power LLC Debt Rated 'BB-'; Outlook Stable

Revere Power LLC has issued a seven-year $445 million term loan B, a $70 million term loan C, and a $55 million revolving credit facility to finance its acquisition of three combined cycle gas plants in New England. The three gas plants (Bridgeport Energy LLC in Connecticut, Tiverton Power LLC in Rhode Island, and Rumford Power LLC in Maine) were purchased from Emera and have a combined nameplate capacity of about 1,143 megawatts (MW). The project has substantial market risk considering that all three plants sell energy, capacity, and ancillary services on a fully merchant basis. It lacks both revenue contracts and hedges that some peers use to lock in forward prices. We are assigning our 'BB-' rating and '2' recovery rating (rounded estimate: 75%) to Revere's term loan B due in 2026, term loan C due in 2026, and revolving credit facility due in 2024. The stable outlook reflects our expectation that the project's capacity factor will remain in line with hist

Rating Raised On Alameda County Industrial Development Authority Series 1996A Bonds

NEW YORK (S&P Global Ratings) April 18, 2019--S&P Global Ratings today raised its rating on Alameda County Industrial Development Authority's series 1996A variable-rate demand revenue bonds to 'A+/A-1' from 'A/A-1'. The series 1996A bonds are supported by a fronting letter of credit (FLOC) provided by Bank of the West ('A/A-1') and a confirming letter of credit (CLOC) provided by BNP Paribas ('A+/A-1'). Today's rating action reflects our recent raising of our issuer credit ratings on BNP Paribas to 'A+/A-1' from 'A/A-1' and Bank of the West to 'A/A-1' from 'A-/A-2' (see " BNP Paribas And Most Core Banking Entities Upgraded To 'A+' On Build-Up Of Bail-In-Able Buffer; Outlook Stable ," published April 5, 2019). The long- and short-term components of our rating on the bonds are based on the higher of our long- and short-term issuer credit ratings on the CLOC and the FLOC providers

Doral, FL Issuer Credit Rating Raised To ‘AA+’ From ‘AA’; 2019 GO Bonds Rated ‘AA+’

CENTENNIAL (S&P Global Ratings) April 18, 2019--S&P Global Ratings raised its long-term rating to 'AA+' from 'AA' on Doral, Fla.'s issuer credit rating. At the same time, S&P Global Ratings assigned its 'AA+' long-term rating to the city's 2019 general obligation (GO) bonds. The outlook is stable. "The upgrade reflects our improved Financial Management Assessment for the city, largely reflecting the institutionalization of a long-term financial planning process and the adoption of a comprehensive debt management policy," said S&P Global Ratings credit analyst Randy Layman. "In conjunction, the rating action also reflects our view of the city's very strong economy, which continues to benefit from rapid population growth, commercial and residential development, and proximity to the Miami International Airport." The city's full faith and credit pledge, including its ability to levy ad valorem property taxes w

Ares XXXIX CLO Ltd./Ares XXXIX CLO LLC Notes Assigned Ratings

Ares XXXIX CLO Ltd./Ares XXXIX CLO LLC's issuance is a CLO securitization backed by primarily broadly syndicated speculative-grade senior secured term loans that are governed by collateral quality tests. We assigned our ratings to the class X-R, A-1-R, B-R, C-R, and D-R notes. The ratings reflect our view of the transaction's diversified collateral pool, credit enhancement, and legal structure, among other factors. NEW YORK (S&P Global Ratings) April 18, 2019--S&P Global Ratings today assigned its ratings to Ares XXXIX CLO Ltd./Ares XXXIX CLO LLC's floating-rate notes (see list). This is a refinancing and extension of the Ares XXXIX CLO transaction, which S&P Global Ratings did not originally rate The note issuance is collateralized loan obligation (CLO) securitization backed by primarily broadly syndicated speculative-grade (rated 'BB+' and lower) senior secured term loans that are governed by collateral quality tests. The ratings ref

Dallas' 2019A And 2019B General Obligation Bonds Assigned 'AA-' Rating; Other Ratings Affirmed

DALLAS (S&P Global Ratings) April 18, 2019--S&P Global Ratings assigned its 'AA-' rating to the City of Dallas' series 2019A and 2019B general obligation (GO) bonds. At the same time, S&P Global Ratings affirmed its 'AA-' long-term and underlying ratings on Dallas' GO bonds. The outlook is stable. The bonds constitute direct obligations of the city, payable from the proceeds of a continuing, direct annual ad valorem tax, within the limits prescribed by law, on all taxable property within its borders. The maximum allowable rate in Texas is $2.50 per $100 of assessed value for all purposes, with the portion dedicated to debt service limited to $1.50. The city's total tax rate is well below the maximum, at 77.67 cents, 21.00 cents of which is dedicated to debt service. Based on the application of our criteria, " Issue Credit Ratings Linked To U.S. Public Finance Obligors’ Creditworthiness ," published Jan. 22, 2018, we view the limited-

Mesa, AZ GO Bond Ratings Raised To 'AA' On Strong Tax Base Growth And Stable Financial Profile

CENTENNIAL (S&P Global Ratings) April 18, 2019--S&P Global Ratings raised its long-term rating and underlying rating (SPUR) to 'AA' from 'AA-' on Mesa, Ariz.'s existing general obligation (GO) bonds. At the same time, S&P Global Ratings assigned its 'AA' long-term rating to the city's series 2019 GO bonds. The outlook is stable. "The raised ratings reflect our view of the city's strong tax base growth over the last five years, driven by ongoing development and steady economic recovery," said S&P Global Ratings credit analyst Alyssa Farrell. "The city's stable financial profile, as evidenced by consistent operating surpluses over the last five years and maintenance of a very strong fund balance position, supports our view of the city's creditworthiness, reinforced by what we consider very strong financial management policies and practices," Ms. Farrell added. "While we note that rising long-term li

Philadelphia 2019A GO Refunding Bonds Assigned 'A' Rating; Other Ratings Affirmed

CHARLOTTESVILLE (S&P Global Ratings) April 18, 2019--S&P Global Ratings assigned its 'A' rating to the city of Philadelphia's series 2019A general obligation (GO) refunding bonds. The outlook is stable. At the same time, S&P Global Ratings affirmed its 'A' rating on the city's existing GO bonds and parity ratings and its 'AA/A-1' ratings on certain Philadelphia Authority for Industrial Development (PAID) debt with PNC Bank. We also affirmed our 'AA+/A-1+' rating on certain PAID debt, with TD Bank providing liquidity support. The outlook is stable. "The rating reflects an improved financial position, supported in part by strong revenue growth, coupled with continued focus on pension funding and reserve balance growth," said S&P Global Ratings credit analyst Lisa Schroeer. The city continues to face challenges with respect to pensions and pockets of poverty. Its pension position and payment discipline have improved, b

Quicken Loans Inc. Outlook Revised To Negative On Declining EBITDA And Growing Leverage; 'BB' Ratings Affirmed

Quicken Loan Inc.'s 2018 leverage rose to above 3.0x from below 1.5x at the end of 2017 because of lower-than-expected EBITDA, driven by lower gain-on-sale margins. We are revising our outlook on Quicken Loans to negative from stable and affirming our 'BB' issuer credit and unsecured debt ratings. The negative outlook reflects our expectation that leverage could remain above 3.0x debt to EBITDA over the next year and put pressure on the rating. NEW YORK (S&P Global Ratings) April 18, 2019-- S&P Global Ratings said today it revised its outlook on Quicken Loans Inc. to negative from stable. We also affirmed our 'BB' issuer credit and unsecured debt ratings. The recovery rating on the debt remains '3', reflecting our expectation of meaningful recovery (50%-70%, rounded estimate: 65%) in a simulated default scenario. Quicken Loans Inc. reported a 46% year-over-year decrease in adjusted EBITDA for 2018, mainly as a result of a compression of gain-

EIG Management Co. LLC Downgraded To 'BB' On Weaker Fund XVII Fundraise And Expected Higher Leverage; Outlook Stable

EIG's fundraise for its Energy Fund XVII significantly underperformed the company's targeted amount. Additionally, we now expect leverage to be sustained above 2x, our trigger point for a downgrade to 'BB', in 2019 and 2020. We are lowering our rating on EIG and its first-lien credit facility to 'BB' from 'BB+'. The stable outlook reflects our expectation for EIG to maintain leverage in the mid 2x area and interest coverage of 4x to 4.5x in 2019. On April 18, 2019, NEW YORK (S&P Global Ratings) April 18, 2019--S&P Global Ratings said today it lowered its rating on EIG Management Co. LLC to 'BB' from 'BB+'. The outlook is stable. At the same time, we also lowered our rating on the company's first-lien credit facility to 'BB' from 'BB+' and its recovery rating to '4', reflecting our expectation for an average recovery (40%) in the event of a payment default. EIG has raised $2.8 billion for its

Connecticut Housing Finance Authority 2019 Bonds Assigned 'AAA', 'AAA/A-1' Ratings

NEW YORK (S&P Global Ratings) April 18, 2019--S&P Global Ratings has assigned its 'AAA' rating to the Connecticut Housing Finance Authority's (CHFA) series 2019B-1 and 2019B-4 Housing Mortgage Finance Program (HMFP) bonds. At the same time, we assigned our 'AAA/A-1' ratings to the authority's series 2019B-2 and 2019B-3 bonds. In addition, we affirmed our 'AAA', 'AAA/A-1+', and 'AAA/A-1' ratings on all debt under the authority's HMFP bond resolution. The outlook on all issues is stable. "The long-term 'AAA' ratings reflect our view of the very strong credit quality of the single- and multifamily mortgage collateral, consolidated cash flows run at various prepayment speeds, sufficient cash-flow strength to absorb additional losses, and the equal and ratable pledge of all bonds under the resolution," said S&P Global Ratings credit analyst David Greenblatt. The authority's HMFP consists of nearly $4.

Cedar Funding XI CLO Ltd. Notes Assigned Preliminary Ratings

Cedar Funding XI CLO Ltd.'s issuance is a CLO transaction backed by primarily broadly syndicated speculative-grade (rated 'BB+' and lower) senior secured term loans that are governed by collateral quality tests. We assigned our preliminary ratings to the class A-1A, A-1F, B-1, B-F, C, D, E, F, and combination notes. The preliminary ratings reflect our view of the transaction's credit enhancement and legal structure, among other factors. NEW YORK (S&P Global Ratings) April 18, 2019--S&P Global Ratings today assigned its preliminary ratings to Cedar Funding XI CLO Ltd.'s fixed- and floating-rate notes and combination notes (see list). The note issuance is collateralized loan obligation (CLO) transaction backed by primarily broadly syndicated speculative-grade (rated 'BB+' and lower) senior secured term loans that are governed by collateral quality tests. The preliminary ratings are based on information as of April 18, 2019. Subsequen

New Braunfels, TX Series 2019 A&B Commercial Paper Notes Assigned 'A-1+' Short-Term Rating

NEW YORK (S&P Global Ratings) April 18, 2019--S&P Global Ratings assigned its 'A-1+' short-term rating to New Braunfels, Texas' (d/b/a New Braunfels Utilities, or NBU) commercial paper notes, series 2019A and 2019B. At the same time, S&P Global Ratings affirmed its 'AA' long-term and underlying ratings on NBU's combined utility senior-lien debt. The outlook on the senior-lien debt is stable. "The rating reflects our opinion of NBU's very strong enterprise risk and financial risk profiles," said S&P Global Ratings credit analyst Jeffrey Panger. The enterprise risk profile reflects our view of NBU's: Very strong service area economic fundamentals; Very strong operational and management assessment; Extremely strong market position; and Extremely strong industry risk relative to other industries and sectors. The financial risk profile reflects our view of the utility's: Very strong coverage metrics; Strong liquid

Ratings Raised On 16 Bank Of The West- And BNP Paribas-Related LOC-Supported Bonds

NEW YORK (S&P Global Ratings) April 18, 2019--S&P Global Ratings today raised its ratings on 15 bond issues supported by letters of credit (LOC) provided by Bank of the West to 'A/A-1' from 'A-/A-2', and on one bond issue supported by an LOC provided by BNP Paribas to 'A+/A-1' from 'A/A-1' (see list). Today's rating action reflects the April 5, 2019, raising of our issuer credit ratings on BNP Paribas to 'A+/A-1' from 'A/A-1' and Bank of the West to 'A/A-1' from 'A-/A-2' (see "BNP Paribas And Most Core Banking Entities Upgraded To 'A+' On Build-Up Of Bail-In-Able Buffer; Outlook Stable," April 5, 2019). The long- and short-term components of our ratings on these bonds are based on our long- and short-term issuer credit ratings on their respective LOC providers. The long-term component of our ratings addresses the likelihood, in our view, of full and timely interest and principa

Massachusetts' Series 2019C-E General Obligation Bonds Rated 'AA' With A Stable Outlook; Other Ratings Affirmed

NEW YORK (S&P Global Ratings) April 18, 2019--S&P Global Ratings has assigned its 'AA' rating to the Commonwealth of Massachusetts' $100 million general obligation (GO) bonds consolidated loan of 2019 series C, $200 million GO bonds consolidated loan of 2019 series D, and $400 million GO bonds consolidated loan of 2019 series E. The outlook is stable. In addition, S&P Global Ratings has affirmed its 'AA' rating on approximately $23 billion of parity GO bonds outstanding, and its 'A' rating on Boston Housing Authority housing project bonds (West Broadway Homes IV project), series 2003, supported by a commonwealth annually appropriated state-operating subsidy, subject to the terms of a trust agreement. Finally, S&P Global Ratings has affirmed its 'A-1+' short-term rating on the state's GO-secured commercial paper. The outlook on all long-term ratings is stable. Factors supporting the 'AA' GO rating include what we view