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Showing posts from May 7, 2019

New Zealand's Trade Me Assigned 'B' Rating With Stable Outlook; First-Lien Term Loan Rated 'B'

Titan AcquisitionCo New Zealand Ltd. benefits from its leading position in the online classifieds and online new and used marketplace in New Zealand. Trade Me's highly leveraged capital structure weighs on the rating. On May 8, 2019, we assigned our 'B' issuer credit ratings to Titan AcquisitionCo New Zealand Ltd. and Titan's operating entity, Trade Me Group Ltd. (collectively Trade Me). We also assigned our 'B' issue rating to the company's US$605 million first-lien term loan. The stable outlook reflects our view that Trade Me will continue to generate revenue growth and stable EBITDA margins. MELBOURNE (S&P Global Ratings) May 8, 2019—S&P Global Ratings said today that it has taken the rating actions listed above. The ratings reflect our assessment of Trade Me's leading position in the online classifieds industry (with the exception of job classifieds, where it is the number two player) and the online new and used marketplace in New Ze

Alam Sutera Realty 'B' Rating Affirmed With Stable Outlook On Improved Liquidity; Off Watch Negative

Alam's US$125 million retap of its 2022 notes has reduced the company's liquidity risk. We also expect the Indonesia-based property developer to have stable property sales and adequate interest coverage over the next 12-18 months. On May 8, 2019, S&P Global Ratings affirmed its 'B' long-term issuer credit rating on Alam and its 'B' long-term issue rating on the company's guaranteed senior unsecured notes. We removed all the ratings from CreditWatch, where they were first placed with negative implications on Jan. 10, 2019. The stable outlook reflects our view that Alam will have sound liquidity and stable property sales over the next 12 months. SINGAPORE (S&P Global Ratings) May 8, 2019--S&P Global Ratings today took the rating actions listed above. We affirmed the rating on PT Alam Sutera Realty Tbk. because the company has addressed its liquidity risk for the next 12 months following a retap of its 2022 notes. Alam will use the US$125 mil

Accounting Software Provider MYOB Rated 'B' With Stable Outlook; Term Loan And Credit Facility Rated 'B'

ETA Australia Holdings III Pty Ltd. (MYOB) benefits from its incumbent market position in the accounting software industry in Australia and New Zealand. The accounting software industry is transitioning from legacy desktop software to cloud-based products, placing greater investment demands on MYOB. MYOB's highly leveraged capital structure is a constraint on the rating. On May 8, 2019, we assigned our 'B' issuer credit rating to ETA Australia Holdings III Pty Ltd. (MYOB). We also assigned our 'B' issue ratings to the company's A$920 million term loan B and A$50 million revolving credit facility (RCF). The recovery ratings on these facilities are '3', reflecting meaningful (50%-70%; rounded estimate: 60%) recovery prospects in a payment default. The outlook on MYOB is stable, reflecting our expectation that MYOB will retain a large portion of its existing market share over the outlook period as it continues to invest in product enhancement and custo

Spanish Oil Company CEPSA Proposed Senior Unsecured Bond Rated 'BBB-'

STOCKHOLM (S&P Global Ratings) May 8, 2019--S&P Global Ratings today assigned its 'BBB-' issue rating to the proposed senior unsecured bond to be issued by Madrid-based integrated oil firm CEPSA (BBB-/Stable/A-3). The bond will be issued under CEPSA's €3 billion Euro medium-term note program, and we understand that CEPSA will use the proceeds to refinance existing debt instruments. The proposed issuance will diversify CEPSA's funding and lengthen its debt maturity profile. The new notes will rank equally with the company's other senior unsecured debt. CEPSA is one of the largest industrial companies in Spain and its presence across most of the oil value chain--from exploration and production, to refining and sale of products--is its key business strength. Despite its operations within the oil industry, the company's subsector exposure provides some protection from economic cycles. The company has a somewhat concentrated asset base compared with larger

La Trobe Financial Capital Markets Trust 2019-1 Nonconforming RMBS Assigned Ratings

MELBOURNE (S&P Global Ratings) May 8, 2019--S&P Global Ratings today assigned ratings to nine classes of residential mortgage-backed securities (RMBS) issued by Perpetual Corporate Trust Ltd. as trustee for La Trobe Financial Capital Markets Trust 2019-1 (see list). La Trobe Financial Capital Markets Trust 2019-1 is a securitization of nonconforming and prime residential mortgages originated by La Trobe Financial Services Pty Ltd. (La Trobe Financial). The ratings reflect: That the credit risk of the underlying collateral portfolio and the credit support provided to each class of notes are commensurate with the ratings assigned. Credit support is provided by subordination and excess spread. The credit support provided to the rated notes is sufficient to cover the assumed losses at the applicable rating stress. The assessment of credit risk takes into account La Trobe Financial's underwriting standards and approval process, which are relatively consistent with

St. Louis College Of Pharmacy, MO Rating Outlook Revised To Negative From Stable on Weakened Enrollment

CENTENNIAL (S&P Global Ratings) May 7, 2019--S&P Global Ratings revised its outlook to negative from stable and affirmed its 'BBB' long-term rating and underlying rating (SPUR) on the Missouri Health and Educational Facilities Authority's existing debt, issued for the St. Louis College of Pharmacy (STLCOP). "The negative outlook reflects our opinion of the college's weakened enrollment and demand profile, with continuous enrollment declines and expectation for another large decline in fall 2019, on an already small enrollment base, coupled with the college's existing very high debt burden, which limits operational flexibility," said S&P Global Ratings credit analyst Amber Schafer. The 'BBB' rating further reflects our view of the college's general obligation pledge, supported by its: Healthy operating surpluses for fiscals 2018 and 2017, though we believe operations may tighten with lower enrollment; Completion of phase two

Triborough Bridge and Tunnel Authority, NY, 2019A Revenue Bonds Rated 'AA-'; Other Ratings Affirmed

NEW YORK (S&P Global Ratings) May 7, 2019--S&P Global Ratings assigned its 'AA-' long-term rating to the Triborough Bridge and Tunnel Authority (TBTA), N.Y.'s pro forma $175 million series 2019A general revenue bonds. The outlook is stable. At the same time, S&P Global Ratings affirmed the following ratings: Its 'AA-' long-term rating and underlying rating (SPUR) on the authority's general revenue bonds outstanding; Its 'A+' long-term rating and SPUR on the TBTA's subordinate revenue bonds outstanding; Its 'AAA/A-1+' ratings and 'AA-' SPUR on the authority's general revenue variable-rate bonds, series 2005B-4C; and Its 'AA+/A-1' ratings and 'AA-' SPUR on the TBTA's general revenue variable-rate bonds, series 2002F, 2003B-1, 2005B-2, and 2018E. "The ratings reflect our opinion of the authority's extremely strong enterprise risk profile and strong financial risk profile," said

Seven Ratings Raised On Two GLS Auto Receivables Trust Transactions

We reviewed GLS Auto Receivables Trust series 2017-1 and 2018-1, which are backed by pools of subprime auto loans originated and serviced by Global Lending Services LLC. We raised our ratings on seven classes of notes from GLS Auto Receivables Trust series 2017-1 and 2018-1. The rating actions reflect our views regarding future collateral performance as well as each transaction's structure and credit enhancement, among other factors. NEW YORK (S&P Global Ratings) May 7, 2019--S&P Global Ratings today raised its ratings on seven classes from GLS Auto Receivables Trust's series 2017-1 and 2018-1 (see list). Today's rating actions reflect collateral performance to date and our expectations regarding future collateral performance, as well as each transaction's structure and credit enhancement. Additionally, we incorporated secondary credit factors, including credit stability, payment priorities under various scenarios, and sector- and issuer-spec

Celestica Inc. Outlook Revised To Negative From Stable On Slower Pace Of Deleveraging

We expect Celestica Inc.'s EBITDA to remain pressured through 2019 due to a softer demand environment for the company's product segments. Based on this, we expect the company's S&P Global Ratings adjusted debt-to-EBITDA to remain elevated at about 3.5x through 2019 compared with our previous expectation of about 3.0x. As a result, S&P Global Ratings revised its outlook on Celestica to negative from stable and affirmed its 'BB' long-term issuer credit rating on the company and its 'BB' issue-level rating on Celestica's senior secured debt. The '3' recovery rating on the debt is unchanged, reflecting meaningful (50%-70% (rounded estimate 65%) recovery in the event of a default. In our view, Celestica will be challenged to improve its EBITDA and credit measures over the next 12 months against the backdrop of continuing softer demand trends across its product segments, which could affect its debt-repaying capacity. TORONTO (S&P Glo

Eastport-South Manor Central School District, NY GO Outlook Revised To Stable From Negative On Stabilized Reserves

NEW YORK (S&P Global Ratings) May 7, 2019--S&P Global Ratings revised the outlook on its 'AA-' rating on Eastport-South Manor Central School District, N.Y.'s general obligation (GO) debt to stable from negative and affirmed the rating. The outlook revision reflects S&P Global Ratings' opinion of the district's ability to stabilize reserves in fiscal years 2018 and 2019. The district has taken significant steps to right-size revenue and expenses by reducing staff and transportation costs and challenging staff and board of education spending habits. The district also eliminated $4.7 million in expenses for the fiscal 2019 budget; the majority of these cuts will provide reoccurring savings. Management will need to continue to balance revenue and expenses in a limited revenue-raising environment. "We do not expect to change the rating during the two-year outlook period. However, if management cannot maintain its momentum in reducing expenditures an

New York State Dormitory Authority 2012G Outlook Revised To Stable From Negative On Stabilized Member Credit Quality

NEW YORK (S&P Global Ratings) May 7, 2019--S&P Global Ratings revised the outlook on its 'AA-' rating on New York State Dormitory Authority's (DASNY) series 2012G school-districts-revenue-bond-financing-program revenue refunding bonds to stable from negative and affirmed the rating. The outlook revision reflects S&P Global Ratings' opinion of the stabilized credit quality of Eastport-South Manor Central School District. The district has made structural changes to its revenue and expenses, and it expects to close with its second straight surplus in fiscal 2019. "We do not expect to change the rating during the next two years. We believe the rating's upside potential is limited based on the participating districts' credit qualities. Debt ratings of the participating districts would need to improve before we would consider raising the rating on DASNY's bonds. Each district would need to show economic improvement, coupled with stabilized or

SoFi Consumer Loan Program 2019-2 Trust Notes Assigned Ratings

SoFi Consumer Loan Program 2019-2 Trust's issuance is an ABS transaction backed by unsecured consumer loans. We assigned our ratings to the class A, B, and C notes. The ratings reflect our view of the transaction's credit support and payment structure, among other factors. NEW YORK (S&P Global Ratings) May 7, 2019--S&P Global Ratings today assigned its ratings to SoFi Consumer Loan Program 2019-2 Trust's consumer loan asset-backed notes (see list). The note issuance is an asset-backed securities transaction backed by unsecured consumer loans. The ratings reflect: The approximately 41%-42%, 36%-37%, and 24%-28% credit support available (including excess spread) in our 'AAA', 'AA', and 'A' break-even cash flow scenarios, respectively. The credit support is defined as break-even net loss rates used in our 'AAA', 'AA', and 'A' stressed break-even cash flow scenarios with front- and back-loaded default

Ratings Affirmed On Seven Classes From BAMLL Commercial Mortgage Securities Trust 2016-ISQR

We affirmed our ratings on seven classes from BAMLL Commercial Mortgage Securities Trust 2016-ISQR, a U.S. CMBS transaction. The affirmations reflect our analysis of the collateral's credit characteristics and performance, as well as the transaction's structure and the liquidity available to the trust. NEW YORK (S&P Global Ratings) May 7, 2019--S&P Global Ratings today affirmed its ratings on seven classes of commercial mortgage pass-through certificates from BAMLL Commercial Mortgage Securities Trust 2016-ISQR, a U.S. commercial mortgage-backed securities (CMBS) transaction (see list). For the affirmations on the principal- and interest-paying classes, our credit enhancement expectation was in line with the affirmed rating levels. We affirmed our ratings on the class X-A and X-B interest-only (IO) certificates based on our criteria for rating IO securities, in which the ratings on the IO securities would not be higher than that of the lowest rated ref

Delek US Holdings Inc. 'BBB-' Senior Secured Term Loan B Rating Affirmed Following Announced $250 Million Add-On

NEW YORK (S&P Global Ratings) May 7, 2019--S&P Global Ratings today affirmed its 'BBB-' issue-level rating on Delek US Holdings Inc.'s $700 million senior secured term loan B following the company's announcement of a $250 million add-on. Delek will use the proceeds from the add-on to repay outstanding borrowings under its asset-based lending (ABL) facility. Delek is a downstream energy company with assets in petroleum refining, convenience store retailing, and renewables. For more information, please see our most recent full analysis on Delek, published Feb. 26, 2019, on RatingsDirect. ISSUE RATINGS--RECOVERY ANALYSIS Key analytical factors Our simulated default scenario for Delek assumes a prolonged downturn in the refining sector wherein the company's margins are low and its cash flow and liquidity are constrained by its mandatory capital spending requirements. We use a discrete asset valuation methodology to value the refineries and an EB

Gibbsboro, NJ GO Bond Rating Lowered To 'AA' From 'AA+' On Economic Pressures, Inconsistent Performance; Outlook Stable

NEW YORK (S&P Global Ratings) May 7, 2019--S&P Global Ratings lowered its long-term rating on Gibbsboro, N.J.'s general obligation (GO) bonds outstanding to 'AA' from 'AA+' and assigned a stable outlook. "The downgrade reflects our view of Gibbsboro's recent use of reserves in response to budgetary pressures from a shrinking tax base," said S&P Global Ratings credit analyst John Kennedy. "The downgrade also reflects our view that the borough's economy will remain less robust than those of higher-rated peers, and that a lack of standardized policies and practices has contributed to recent inconsistent budgetary performance." Offsetting these negative credit qualities are the borough's very strong budgetary flexibility, and very strong liquidity. Unaudited results for 2018 show fund balance stabilized around $1.0 million, or 28.5% of expenditures. The borough's return to balanced operating performance, combined with

Sungard AS New Holdings LLC Assigned 'B-' Issuer Credit Rating Following Its Emergence From Bankruptcy, Outlook Stable

Sungard AS New Holdings LLC (Sungard AS) emerged from Chapter 11 bankruptcy as a new legal entity on May 3, 2019. The company has substantially reduced its balance sheet debt. However, we expect that competition and industry dynamics will continue to pressure its revenue and profitability. We are assigning our 'B-' issuer credit rating on Sungard AS. At the same time, we are assigning our 'B+' issue-level rating and '1' recovery rating to the company's first-out $100 million delayed draw term loan and our 'B-' issue-level rating and '3' recovery rating to its $300 million second-out term loan. We are withdrawing all our ratings at Sungard Availability Services Capital, Inc. as that entity and its debts were extinguished on May 3, 2019. The stable outlook reflects our expectation that Sungard AS will maintain sufficient liquidity over the next 12 months, continue to face secular declines in its traditional services markets, and experience

New Jersey Economic Development Authority's 2019 GGG And HHH Bonds Rated 'BBB+'; New Jersey 'A-' GO Bond Rating Affirmed

NEW YORK (S&P Global Ratings) May 7, 2019--S&P Global Ratings has assigned its 'BBB+' rating and stable outlook to the New Jersey Economic Development Authority's (EDA) school facilities construction refunding bonds, approximately $433.42 million 2019 series GGG, and approximately $52.575 million 2019 series HHH. The outlook is stable. At the same time, S&P Global Ratings affirmed its 'A-' rating on the state's general obligation (GO) bonds, its 'BBB+' rating on other bonds secured by annual appropriations from New Jersey for state infrastructure, its 'BBB' rating on bonds secured by appropriations for a human services provider, its 'BBB-' rating on South Jersey Ports Corp.'s state moral obligation debt, and its 'BBB+' rating on the New Jersey Transportation Trust Fund Authority's transportation system bonds and transportation program bonds. The outlook on all ratings is stable. The 2019 series GGG and HHH

United Group 'B' Ratings Affirmed On Secondary Buyout; Outlook Stable

On March 4, 2019, BC Partners closed the transaction with KKR whereby it acquired a majority stake in United Group B.V., the leading cable and pay-TV operator in the former Yugoslavia region and the third-largest mobile operator in Slovenia. The transaction will be partly funded with an issuance of €306 million of pay-if-you-can payment-in-kind (PIK) notes by a new intermediate holding company, Summer Bidco B.V. As a result of this, we forecast that United Group's S&P Global Ratings-adjusted gross leverage will remain at about 7x in 2019, and reduce to 6.0x-6.5x by 2020, largely as a result of organic revenue growth and EBITDA contributions from recently acquired media assets. We are affirming our 'B' issuer credit rating on United Group and our 'B' issue ratings on its existing senior secured notes. We are also assigning our 'B' issue rating to the proposed €550 million notes issued for refinancing purposes, and our 'B-' issue rating to the