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Showing posts from May 21, 2019

Natixis Structured Issuance's Proposed ZAR Senior Unsecured Notes Rated 'A+' On Natixis Guarantee

PARIS (S&P Global Ratings) May 22, 2019--S&P Global Ratings today assigned its 'A+' long-term issue rating to the proposed South African rand (ZAR) senior unsecured notes (ISIN XS1881352691) to be issued by Luxembourg-based Natixis Structured Issuance S.A. (NSI). NSI is a wholly owned indirect subsidiary of the French bank Natixis S.A. (Natixis; A+/Stable/A-1), which we see as having core strategic importance to the larger banking group BPCE. The rating on the proposed notes is based on our analysis of Natixis' guarantee dated Jan. 23, 2014, to the holders of financial instruments issued by NSI (the "Natixis Guarantee"). We see the Natixis Guarantee as one of payment at first demand that is notably unconditional and irrevocable, and we consider the notes qualify to be rated in line with our long-term issuer credit rating on Natixis.

Outlook On Lowell's Parent Garfunkelux Holdco 2 S.A. Revised To Negative On Deleveraging Risk; 'B+/B' Ratings Affirmed

Under our revised base case for the next 12 months there is now a material risk that Lowell (the trading name of Garfunkelux Holdco 2 S.A.) will not be able to achieve sustainably lower leverage. We are revising our outlook on the group to negative to reflect this potential risk, but affirming our 'B+/B' long- and short-term issuer credit ratings on Garfunkelux Holdco 2 S.A. Our recovery ratings on the outstanding super senior revolving credit facility, senior secured debt, and unsecured debt remain unchanged. LONDON (S&P Global Ratings) May 22, 2019--S&P Global Ratings said today that it revised its outlook on Luxembourg-based debt collection company Garfunkelux Holdco 2 S.A. (Lowell) to negative from stable. We affirmed our 'B+/B' long- and short-term issuer credit ratings on the company. We also affirmed: The 'B+' issue rating on the existing senior secured notes issued by Garfunkelux Holdco 3 S.A.; the recovery rating is unchanged at '4

French Residential Property Developer in'li Assigned 'BBB+' Rating; Outlook Positive

in'li manages a €7.9 billion portfolio of intermediary residential housings in the greater Paris region (Ile-de-France), and has moderate indebtedness, with its debt to debt plus equity (fair value adjusted) expected at below 25% over the next 24 months. We consider in'li's business model and cash-flow generation predictability as robust, with the company renting housing units in undersupplied geographical areas and at below-market levels, ensuring high occupancy at all times. We are therefore assigning our 'BBB+' long-term issuer credit rating to in'li. The positive outlook reflects our view that we may upgrade in'li within the coming 24 months, assuming that its parent Action Logement group and its key subsidiaries improve their financial reporting over this period and provide greater transparency regarding their financial performance, strategy, and governance. S&P Global Ratings today took the rating action listed above. Our assessment of in

Dr. Peng Telecom & Media Group Downgraded To 'B-' On Rising Liquidity Strain And Refinancing Risks; Outlook Negative

China-based Dr. Peng faces significant debt maturities in mid-2020, but has made limited progress in refinancing. Expansion in network maintenance services and internet data centers (IDC) could add to the pressure on liquidity amid reduced operating cash flow and large capital expenditure. On May 22, 2019, S&P Global Ratings lowered its long-term issuer credit rating on Dr. Peng to 'B-' from 'B'. We also lowered the issue rating on the company's guaranteed senior unsecured debt to 'B-' from 'B'. The negative outlook for the next 12 months reflects our view that Dr. Peng's liquidity could further decline without meaningful progress in refinancing. We lowered the rating based on Dr. Peng's rising liquidity pressure. The company has significant debt maturities in the first half of 2020, but has made limited progress in refinancing. About Chinese renminbi (RMB) 5.6 billion of Dr. Peng's debt will mature by June 30, 2020.

Arroyo Mortgage Trust 2019-2 Notes Assigned Ratings

Arroyo Mortgage Trust 2019-2's issuance is an RMBS transaction backed by first-lien, fixed- and adjustable-rate, fully amortizing residential mortgage loans (some with interest-only periods) secured by single-family residential properties, planned-unit developments, condominiums, cooperatives, and two- to four-family residential properties to both prime and nonprime borrowers. The loans are primarily non-qualified mortgage loans. We assigned our ratings to the class A-1A, A-1B, A-1, A-2, A-3, M-1, B-1, and B-2 notes. The ratings reflect our view of the transaction's credit enhancement, associated structural mechanics, representation and warranty framework, and the pool's collateral composition, among other factors. NEW YORK (S&P Global Ratings) May 21, 2019--S&P Global Ratings today assigned its ratings to Arroyo Mortgage Trust 2019-2's mortgage-backed notes (see list). The note issuance is a residential mortgage-backed securities (RMBS) tra

Bunkie, LA Utility Revenue Bond Rating Lowered Two Notches To 'BBB-' On Weakened Debt Service Coverage

DES MOINES (S&P Global Ratings) May 21, 2019--S&P Global Ratings lowered its long-term rating two notches to 'BBB-' from 'BBB+' on Bunkie, La.'s series 2015 utility revenue bonds. The rating reflects, in our opinion, the combination of adequate enterprise and financial risk profiles. The outlook is stable. "The lowered rating reflects our view of the system's thin and weakened all-in debt service coverage metrics and extremely thin liquidity," said S&P Global Ratings credit analyst John Schulz. "The utility fund relies on volatile grant revenue to cover all system expenditures," Mr. Schulz added. The enterprise risk profile reflects our view of the utility system's: Weak, limited, and primarily rural service area economy; Rates that we view as slightly above average in relation to regional peers; and What we view as standard overall operational management practices. The financial risk profile reflects our view of t

Southern California Metropolitan Water District, CA Nearly $465.33 Million Water Bonds Assigned Various Ratings

SAN FRANCISCO (S&P Global Ratings) May 22, 2019--S&P Global Ratings assigned its 'AAA' long-term rating to the Southern California Metropolitan Water District's (MWD, or the district) $222.25 million senior-lien water revenue refunding bonds, 2019 series A. At the same time, S&P Global Ratings assigned its 'AA+' long-term rating to the district's $243.08 million subordinate water revenue refunding bonds, 2019 series A. Finally, we affirmed our various ratings on the district's existing revenue bonds, including our: 'AAA' long-term rating and underlying rating (SPUR) on MWD's senior-lien revenue bonds; 'AA+' long-term rating on MWD's subordinate-lien revenue bonds; 'A-1+' short-term rating on MWD's senior-lien self-liquidity revenue bonds (variable-rate bonds without bank enhancement); 'AAA' long-term component of the dual rating on MWD's special variable-rate water revenue bonds (variable-rate

Caleres Inc. Outlook Trigger Revised On Cushion In Ratings

We project continued credit metrics improvement at Caleres Inc. over the next 12-24 months, reflecting our expectations for further operational enhancement and meaningful reduction of its asset-based lending (ABL) revolver borrowings from the current, temporarily elevated level following the Vionic acquisition in October 2018. We are affirming our ratings on Caleres, including our 'BB' issuer credit rating, reflecting our projection of reduced but still sufficient room in the ratings to accommodate elevated credit metrics. At the same time, we are our affirming our 'BB' issue-level rating on Caleres' $200 million senior notes due in 2023 and revising the recovery rating to '3' from '4'. The stable outlook reflects our projection for moderate EBITDA base growth on good performance trends at the Famous Footwear segment, the contribution of recent acquisitions within the Brand Portfolio segment, and use of a majority of cash flow to pay down revolve

Various Rating Actions Taken On 17 National Collegiate Student Loan Trusts

We reviewed 53 ratings from 17 National Collegiate Student Loan Trusts collateralized by private student loans. We raised our ratings on 15 classes of notes, affirmed our ratings on 15 classes of notes, and lowered our ratings on two classes of notes. The remaining 21 ratings were previously lowered to 'D (sf)'. NEW YORK (S&P Global Ratings) May 21, 2019--S&P Global Ratings today raised its ratings on 15 classes of notes, affirmed its ratings on 15 classes of notes, and lowered its ratings on two classes of notes issued by 17 National Collegiate Student Loan Trusts (12 discrete trusts and five grantor trusts), all collateralized by private student loans issued between 2003 and 2007. The remaining 21 ratings were previously lowered to 'D (sf)' because the affected classes breached their subordinate interest triggers and missed receiving timely interest payments. The review excludes the series 2007-3, 2007-4, and master trust I that were reviewed n

Viacom Inc. Outlook Revised To Stable From Negative On Reduced Leverage; Ratings Affirmed

U.S.-based diversified media company Viacom Inc. has reduced adjusted leverage to 3.2x as of March 31, 2019, below our 3.25x downside leverage threshold for the 'BBB-' rating. We are revising our outlook on Viacom to stable from negative and affirming our 'BBB-' long-term issuer credit rating and 'A-3' short-term rating on the company. The stable outlook incorporates our view that Viacom will preserve its position in the TV ecosystem by maintaining broad distribution of its core networks across traditional and virtual distribution platforms and continue to generate positive EBITDA and cash flow at its Paramount Studio, while maintaining adjusted leverage below 3.25x. CHICAGO (S&P Global Ratings) May 21, 2019—S&P Global Ratings today took the rating actions listed above. Viacom has lowered its adjusted debt-to-EBITDA ratio to 3.2x as of March 31, 2019, from 3.6x a year ago and is now below our 3.25x threshold for the 'BBB-' issuer credit rat

Tupy S.A. Ratings Raised To 'BB' From 'BB-' On Likely Higher Cash Flows, Outlook Stable

We expect Brazil-based auto parts manufacturer Tupy S.A. to generate solid and increasing cash flows from continued revenue growth and some profitability improvements. Therefore, Tupy should reduce leverage even more, with debt to EBITDA approaching 1.5x in the next few years from 2.1x in 2018. As a result, on May 21, 2019, S&P Global Ratings raised its long-term global and national scale issuer credit ratings to 'BB' from 'BB-' and to 'brAAA' from 'brAA+', respectively. We also raised our debt rating to 'BB' from 'BB-'. The outlook is now stable, reflecting our expectation that Tupy will post EBITDA margin of 14%-15% and debt to EBITDA at 1.5x-2.0x in the next few years as it maintains solid operating cash flows. SAO PAULO (S&P Global Ratings) May 21, 2019--S&P Global Ratings took rating actions described above. Tupy's upgrade reflects our expectation that the company will continue posting solid revenue growth in t

Washington School District, MO Debt Ratings Raised To 'AA' And 'AA-' On Consecutive Surpluses

CENTENNIAL (S&P Global Ratings) May 21, 2019--CENTENNIAL (S&P Global Ratings) May 21, 2019--S&P Global Ratings raised its rating to 'AA' from 'AA-' on the Washington School District, Mo.'s general obligation (GO) bonds outstanding, and its rating to 'AA-' from 'A+' on the district's existing appropriation debt. In addition, we assigned our 'AA+' long-term rating and 'AA' underlying rating to the district's series 2019 GO bonds. We also affirmed our 'AA+' long-term rating on the district's program-qualified obligations outstanding. The outlook is stable. "After two years of deficits due to a shift in how a local power plant was assessed, the district has record three consecutive surpluses due to growth in local revenues, as well as conservative budgeting," said S&P Global Ratings credit analyst Alex Louie. "Supporting the economic and financial metrics are good financial management

Wisconsin 2019A GO VRDO Notes Assigned 'AA/A-1+' Ratings; Other Ratings Affirmed

CHICAGO (S&P Global Ratings) May 21, 2019--S&P Global Ratings assigned its 'AA' long-term rating and 'A-1+' short-term rating to the state of Wisconsin's series 2019A general obligation (GO) variable-rate demand obligation (VRDO) notes. At the same time, S&P Global Ratings affirmed its 'AA' long-term ratings and underlying ratings (SPURs) on the state's existing GO bonds, its 'AA-' ratings on Wisconsin's appropriation-backed debt outstanding, and its 'A+' ratings on bonds backed by the state's moral obligation pledge, as well as its 'A' rating on the Wisconsin Center District bonds outstanding. Finally, S&P Global Ratings affirmed its 'A-1+' short-term rating on the state's GO commercial paper (CP) and extended municipal CP programs. The outlook on all long-term ratings is stable. "The 'AA' rating on Wisconsin's GO bonds and notes reflects our view of the state's governme

Braselton, GA Water And Sewer Revenue Bond Outlook Revised To Positive On Growing Debt Service Coverage

DES MOINES (S&P Global Ratings) May 21, 2019--S&P Global Ratings revised its outlook to positive from stable and affirmed its 'A' long-term and underlying ratings on the town of Braselton, Ga.'s water and sewerage revenue bonds outstanding. "The positive outlook reflects growing all-in debt service coverage and unrestricted liquidity," said S&P Global Ratings credit analyst John Schulz. "The rating further reflects our opinion of the combination of a very strong enterprise risk profile and adequate financial risk profile," Mr. Schulz added. The enterprise risk profile reflects our view of the system's: Stable, diverse customer base, with above-average income indicators; Very low industry risk associated with public water and sewer service; Track record of rate increases and approved future increases through 2020; and Good operational management policies and practices. The financial risk profile reflects our view of the system

MMCF CLO 2019-2 LLC Notes Assigned Ratings

MMCF CLO 2019-2 LLC's issuance is a CLO transaction backed primarily by middle-market speculative-grade senior secured term loans. We assigned our ratings to the class A-1, A-2, B, C, and D 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) May 21, 2019--S&P Global Ratings today assigned its ratings to MMCF CLO 2019-2 LLC's floating-rate notes (see list). The note issuance is a collateralized loan obligation (CLO) transaction backed primarily by middle-market speculative-grade senior secured term loans. The ratings reflect: The diversified, static collateral pool, which consists primarily of middle market speculative-grade senior-secured term loans. The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization. The transaction's legal structure, which is expected to b

Saffron Borrowco LLC (Smart & Final Grocery) Rated 'B' On Apollo Take-Private Transaction; Outlook Negative

Apollo Global Management LLC is acquiring value-oriented food retailer Smart & Final Stores Inc. (SFS) and separating it into two corporate entities, Smart & Final Grocery and Smart Foodservice. We are assigning our 'B' issuer credit rating to Saffron Borrowco LLC (d.b.a. Smart & Final Grocery; SFG). At the same time, we are assigning our 'B' issue-level and '3' recovery ratings to the proposed first-lien debt facility, which includes a $380 million term loan. The negative outlook reflects the risk of pressure on profits given plans to stop store openings and drive EBITDA from items including cost cutting in the coming year against a competitive backdrop. NEW YORK (S&P Global Ratings) May 21, 2019--S&P Global Ratings today took the rating actions listed above. The rating on Smart & Final Grocery reflects our expectation for adjusted leverage in the high-5x area pro forma for this transaction over the next two years, with downside r

Aretec Group Inc. Ratings Raised To 'B' On Improved Operating Performance; Outlook Stable

Aretec Group Inc. meaningfully improved its operating performance in 2018 with 29% growth in adjusted EBITDA and 15% growth in net revenues. The company has announced a proposed $105 million incremental first-lien issuance primarily to purchase select assets of the broker-dealer arm of Foresters Financial. As a result, we have raised our issuer credit rating on Aretec Group to 'B' from 'B-'. At the same time, we raised our rating on the company's first-lien debt, including the proposed incremental $105 million issuance, to 'B' from 'B-' and on the second-lien to 'CCC+' from 'CCC'. The stable outlook reflects our belief that over the next 12 months Aretec Group will continue to grow its EBITDA and net revenues while maintaining adequate covenant cushions. Further, we expect the company will maintain its improved adviser retention rates and continue to limit its exposure to market and credit risks. NEW YORK (S&P Global Rating