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Showing posts from April 22, 2019

Ashtead Group Upgraded To 'BBB-' On Continued Strong Operating Performance; Outlook Stable

Given the favorable fundamentals in the U.S. equipment rental market, we expect Ashtead Group's performance to remain resilient, supported by conservative financial policies. As a result, we are raising our long-term issuer credit rating on Ashtead to 'BBB-' from 'BB+'. We are also affirming our 'BBB-' ratings on the second priority bonds, despite expected collateral fall away. The stable outlook reflects our expectation that Ashtead will cement its position in the U.S. market and post robust operating performance over the next 24 months. We also anticipate that Ashtead will balance the level of capital investments with cash flow generation, and maintain stable EBITDA margins with leverage of below 2.0x and FFO to debt comfortably above 45%. LONDON (S&P Global Ratings) April 23, 2019--S&P Global Ratings today took the rating actions listed above. The upgrade incorporates our view that Ashtead is well positioned to benefit from growth prospects

Logistics Services Provider Logwin Upgraded To 'BB+' On Prudent Financial Policy, Strong Cash Position; Outlook Stable

Logistics service provider Logwin continues to demonstrate a positive EBITDA trajectory and cash accumulation, while keeping its credit measures consistent with a 'BB+' rating. We believe Logwin will maintain its prudent financial policy and generate excess cash flows, enhancing the company's resilience against potential adverse trading conditions. We are therefore raising our long-term issuer credit rating on Logwin to 'BB+' from 'BB'. The stable outlook reflects our view that Logwin will post low-single-digit revenue growth, stabilize its EBITDA margin at 4%-5%, and achieve weighted average adjusted funds from operations (FFO) to debt above 50%, while pursuing a disciplined dividend and investment policy and maintaining an ample cash balance. FRANKFURT (S&P Global Ratings) April 23, 2019--S&P Global Ratings today took the rating actions listed above. The upgrade reflects Logwin's resilient operating performance translating into sustain

Serba Dinamik Holdings Bhd. Assigned Preliminary 'BB-' Rating, Outlook Stable

Serba Dinamik Holdings Bhd. (SDHB) has modest scale with commoditized service offerings, limited record compared with peers with large-scale project execution, large investment needs, and somewhat untested asset acquisition strategy of growth. Its record of timely and within-budget project execution, respectable client base, good cost control, short but prudent history of equity raising and investments negate some of its rating constraints. On April 23, 2019, we assigned our preliminary 'BB-' long-term issuer credit rating to Serba Dinamik. We also assigned our preliminary 'BB-'issue rating to the proposed sukuk trust certificates that the company guarantees. Our stable outlook on Serba Dinamik indicates our expectations that the company will continue to renew expiring contracts and win new contracts at a healthy rate. We assume the company will manage prudently its capital expenditure for growth and its working capital investment. SINGAPORE (S&P Global Ratin

Papua New Guinea 'B/B' Ratings Affirmed; Outlook Stable

Foreign and Local Currency: B/Stable/B For further details see Ratings List. Overview We expect Papua New Guinea's fiscal performance to improve during the period to 2022, owing to favorable resource tax collection and a tightening of expenditure. We are affirming our 'B' foreign- and local-currency long-term ratings and 'B' respective short-term rating on PNG. The stable outlook balances our view that PNG will remain a low-income economy with weak institutions and limited monetary flexibility, with our expectation that fiscal imbalances will improve during the next 12 months. Rating Action On April 23, 2019, S&P Global Ratings affirmed its 'B' foreign- and local-currency long-term ratings and 'B' respective short-term rating on Papua New Guinea (PNG). The outlook on the long-term rating remains stable. At the same time, we have lowered our transfer and convertibility assessment to 'B' from 'BB-'. Outlook The sta

Italian Retail Property Company IGD Assigned 'BBB-' Rating; Outlook Stable

IGD Siiq S.P.A is a key player in Italy's real estate industry, with a portfolio worth €2.4 billion comprising 27 shopping malls and 25 hypermarkets, mostly in central and northern regions of Italy. IGD's revenue is quite concentrated (27%) on its unique hypermarket tenants and 53% shareholders, Coop Alleanza 3.0 and Unicoop Tirreno, two of the largest cooperatives in Italy. However, the company shows strong capacity to cover its interest burden with EBITDA interest coverage above 3x and prudent gearing, with debt-to-debt plus equity and debt-to-EBITDA ratios remaining below 50% and 10x. We are assigning a 'BBB-' long-term issuer credit rating to IGD. The stable outlook reflects our view that IGD will likely continue to generate stable and predictable rental income, despite the challenging retail and macro environments in Italy. MADRID (S&P Global Ratings) April 23, 2019--S&P Global Ratings today took the rating actions listed above. IGD's portfo

CAR Inc. 'BB-' Rating Affirmed With Negative Outlook; Refinancing Plan Announced

We expect CAR Inc. to conduct a partial exchange of the company's outstanding senior unsecured notes due February 2020. We also expect the company to issue new notes to repay its syndicated loan due November 2019. These initiatives show CAR Inc.'s refinancing progress. On April 23, 2019, S&P Global Ratings affirmed its 'BB-' issuer credit rating on CAR Inc. At the same time, we affirmed the 'BB-' issue rating on the company's outstanding U.S.-dollar-denominated debt. We also assigned our 'BB-' long-term issue rating on the U.S.-dollar-denominated senior unsecured notes that CAR Inc. proposes to issue for the exchange offer. The issue rating is subject to our review of the final issuance documentation. The negative outlook on the issuer credit rating reflects the uncertainties around market demand and the impact on CAR Inc.'s pending refinancing plan. HONG KONG (S&P Global Ratings) April 23, 2019--S&P Global Ratings today affirm

PT Medco Energi's Proposed Senior Unsecured Notes Rated Preliminary 'B'

SINGAPORE (S&P Global Ratings) April 23, 2019--S&P Global Ratings today said it has assigned its preliminary 'B' long-term issue rating to a proposed issue of U.S. dollar-denominated senior unsecured notes guaranteed by PT Medco Energi Internasional Tbk. (Medco; B/Positive/--) and issued by its fully owned subsidiary Medco Oak Tree Pte. Ltd. The rating is subject to our review of the final issuance documentation. Medco will use the proceeds from the proposed issuance to pay for the proposed acquisition of Ophir Energy PLC and relevant transaction costs. We already incorporate the effect of this issuance and the Ophir Energy acquisition in our ratings on Medco. We equalize the rating on the notes with our 'B' issuer credit rating on Medco. The company's assets are located in Indonesia, a jurisdiction that we consider to have a weak rule of law, a lack of creditor-friendly features, and no consistency in the conformity of the distribution of proceeds to l

Irish Telecom Group Eircom Rating Affirmed At 'B+' On Proposed Dividend Recapitalization; Outlook Stable

eircom plans to issue €850 million of debt, through subsidiaries eircom Finco and eircom Finance, to pay a €300 million dividend to shareholders and refinance the outstanding bond. Although this will result in higher adjusted leverage, it will be mitigated by eircom's stronger-than-expected operating performance in 2018 stemming from ongoing cost optimization and an improving subscriber mix. We are affirming our 'B+' ratings on eircom Holdings (Ireland) Ltd. and its existing senior secured debt, and assigning our 'B+' rating to the proposed senior secured instruments. The stable outlook reflects the group's focus on streamlining its operations and cost structure, while investing in its networks to gain subscribers and market shares, partly offset by higher leverage after the proposed dividend recapitalization. PARIS (S&P Global Ratings) April 23, 2019--S&P Global Ratings today made the rating actions listed above. We affirmed the ra

Norinchukin Bank 'A/A-1' Ratings Affirmed, Outlook Stable; Stand-Alone Assessment Lowered On Asset-Liability Mismatches

We have revised our assessment of Japan-based Norinchukin Bank's risk position because risk from mismatches in assets and liabilities have grown as it makes investments to secure stable returns for its lower-tier cooperatives. We are revising the stand-alone credit profile (SACP) on the bank to 'bbb+' from 'a-' while affirming the 'A' long- and 'A-1' short-term issuer credit ratings after incorporating an additional notch of uplift for potential extraordinary government support. The stable outlook reflects our expectation that the SACP will remain steady and the likelihood of government support will continue to support our ratings. TOKYO (S&P Global Ratings) April 23, 2019--S&P Global Ratings today said it has affirmed its 'A' long- and 'A-1' short-term issuer credit ratings on Norinchukin Bank, the central bank of agricultural, fishery, and forestry cooperatives in Japan. The outlook on the long-term issuer credit ratin

Redco Properties Group Ltd.'s Proposed U.S. Dollar Senior Unsecured Notes Assigned 'B' Rating

HONG KONG (S&P Global Ratings) April 23, 2019--S&P Global Ratings today assigned its 'B' long-term issue rating to the U.S. dollar-denominated senior unsecured notes proposed by Redco Properties Group Ltd. (B/Stable/--). The issue rating is subject to our review of the final issuance documentation. We equalize the issue rating with the issuer credit rating on Redco because the proposed notes are not significantly subordinated to other debt in the company's capital structure. As of Dec. 31, 2018, Redco's capital structure consisted of about Chinese renminbi (RMB) 5.4 billion in secured debt, RMB5.7 billion in unsecured debt, and other borrowings issued at the holding company level. The company's priority debt ratio is below our notching down threshold of 50%. We do not expect the new issuance to have a significant impact on Redco's financial leverage. That's because the company will use most of the proceeds to refinance its existing debt, with so

II-VI Inc. Assigned 'BB-' Issuer Credit Rating On Finisar Acquisition-Related Debt Issuance; Outlook Stable

II-VI Inc. plans to issue a $450 million revolving credit facility, $1.175 billion term loan A, and a $800 million term loan B to fund the acquisition of Finisar, a provider of optical subsystems and components, for data communication and telecommunication applications. We assigned our 'BB-' issuer credit rating to II-VI Inc. We assigned our 'BB-' issue-level rating and '3' recovery rating to the company's proposed revolving credit facility, term loan A, and term loan B. We also assigned our 'B+' issue-level rating and '5' recovery rating to the company's existing $345 million senior unsecured convertible debt. The stable outlook on II-VI reflects our expectation that the company will continue to grow its lasers, photonics, and performance products business segments and successfully integrate the Finisar acquisition while extracting synergies, resulting in S&P-adjusted leverage falling to the mid-3x area over the next 12 to 24 mo