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Showing posts from April 7, 2020

Dampened Industry Prospects Amid COVID-19 Outbreak Lead To Various Rating Actions On Chinese Auto Suppliers

We expect global auto sales to drop by 15% year-on-year in 2020, as slowing economic growth amid the COVID-19 fallout dampens consumer confidence and auto consumption. Weak demand prospects and operational disruptions will weigh significantly on auto suppliers' financial performances and reduce their rating buffers. We have taken various rating actions on the four auto suppliers that we rate in China. HONG KONG (S&P Global Ratings) April 8, 2020--S&P Global Ratings today said it has taken various rating actions on four China-based auto suppliers as follows: We placed our 'BBB' ratings on Johnson Electric Holdings Ltd. on CreditWatch with negative implications. We placed our 'BBB-' ratings on Nexteer Automotive Group Ltd. on CreditWatch with negative implications. We revised our outlook on Yanfeng Global Automotive Interior Systems Co. Ltd. to negative from stable and affirmed our 'BBB-' rating on the company. We lowered our ratings on Pear

AI Credit Rating 6-K - PLDT Inc. (0000078150) (Filer) Score: 78

6-K - PLDT Inc. (0000078150) (Filer) AI credit rating value 78 Beta DRL value REG 37 Rational Demand Factor LD 3488.3394 AI check at Wed Apr 08 2020 12:51:27 GMT+0200 (Eastern European Standard Time) by AC Investment Inc. AI Credit Rating Terminal Reason: (n+7) EMR Beta Code: 4000 Rating AI Process rely on primary sources of information: Sec Filings, Financial Statements, Credit Ratings, Semantic Signals. Take a look at Machine Learning section for Financial Deep Reinforcement Learning.

AI Credit Rating 10-Q - Trilogy Metals Inc. (0001543418) (Filer) Score: 74

10-Q - Trilogy Metals Inc. (0001543418) (Filer) AI credit rating value 74 Beta DRL value REG 31 Rational Demand Factor LD 3488.3394 AI check at Wed Apr 08 2020 12:41:27 GMT+0200 (Eastern European Standard Time) by AC Investment Inc. AI Credit Rating Terminal Reason: (n+1) Demand Factor Code: 2700 Rating AI Process rely on primary sources of information: Sec Filings, Financial Statements, Credit Ratings, Semantic Signals. Take a look at Machine Learning section for Financial Deep Reinforcement Learning.

AI Credit Rating 8-K - ORASURE TECHNOLOGIES INC (0001116463) (Filer) Score: 76

8-K - ORASURE TECHNOLOGIES INC (0001116463) (Filer) AI credit rating value 76 Beta DRL value REG 43 Rational Demand Factor LD 3488.3394 AI check at Wed Apr 08 2020 12:31:27 GMT+0200 (Eastern European Standard Time) by AC Investment Inc. AI Credit Rating Terminal Reason: (n+30) Profit Factor Code: 3173 Rating AI Process rely on primary sources of information: Sec Filings, Financial Statements, Credit Ratings, Semantic Signals. Take a look at Machine Learning section for Financial Deep Reinforcement Learning.

AI Credit Rating DEFA14A - FIRST HORIZON NATIONAL CORP (0000036966) (Filer) Score: 76

DEFA14A - FIRST HORIZON NATIONAL CORP (0000036966) (Filer) AI credit rating value 76 Beta DRL value REG 16 Rational Demand Factor LD 3488.3394 AI check at Wed Apr 08 2020 12:21:27 GMT+0200 (Eastern European Standard Time) by AC Investment Inc. AI Credit Rating Terminal Reason: (n+7) Trend Beta Code: 1111 Rating AI Process rely on primary sources of information: Sec Filings, Financial Statements, Credit Ratings, Semantic Signals. Take a look at Machine Learning section for Financial Deep Reinforcement Learning.

AI Credit Rating 6-K - RYANAIR HOLDINGS PLC (0001038683) (Filer) Score: 74

6-K - RYANAIR HOLDINGS PLC (0001038683) (Filer) AI credit rating value 74 Beta DRL value REG 20 Rational Demand Factor LD 3488.3394 AI check at Wed Apr 08 2020 12:11:27 GMT+0200 (Eastern European Standard Time) by AC Investment Inc. AI Credit Rating Terminal Reason: (n+1) Price Factor Code: 2327 Rating AI Process rely on primary sources of information: Sec Filings, Financial Statements, Credit Ratings, Semantic Signals. Take a look at Machine Learning section for Financial Deep Reinforcement Learning.

AI Credit Rating EFFECT - FT 8661 (0001799249) (Filer) Score: 74

EFFECT - FT 8661 (0001799249) (Filer) AI credit rating value 74 Beta DRL value REG 15 Rational Demand Factor LD 3488.3394 AI check at Wed Apr 08 2020 12:01:28 GMT+0200 (Eastern European Standard Time) by AC Investment Inc. AI Credit Rating Terminal Reason: (n+7) Rating Factor Code: 2033 Rating AI Process rely on primary sources of information: Sec Filings, Financial Statements, Credit Ratings, Semantic Signals. Take a look at Machine Learning section for Financial Deep Reinforcement Learning.

Ratings On China Longyuan Power Group, Subsidiary Hero Asia Investment Affirmed With Stable Outlook; Off CreditWatch

We expect China Longyuan Power Group Corp. Ltd.'s capacity-led profit growth to partly offset its higher debt burden over the next two years. We believe the China-based power generation company is strategically important to its controlling shareholder, China Energy Investment Corp. Ltd. (CEIC). We view Longyuan's wholly owned subsidiary, Hero Asia Investment Ltd. as having high strategic importance to Longyuan. On April 8, 2020, S&P Global Ratings affirmed its 'A-' long-term issuer credit rating on Longyuan and the 'BBB+' long-term issuer credit rating on Hero Asia. We removed the ratings from CreditWatch, where they were placed with developing implications on Aug. 30, 2017. The stable outlook on Longyuan reflects our view that the company can keep its credit ratios commensurate with the 'bbb-' stand-alone credit profile (SACP) over the next two years. The stable outlook on Hero Asia reflects the outlook on Longyuan. SINGAPORE (S&

GCL New Energy Holdings Downgraded To 'CCC' On Heightened Liquidity Risk; Outlook Negative

We view GCL New Energy Holdings Ltd.'s (GNE) liquidity as weak due to persistent delays in receipt of renewable energy subsidies, as well as execution risk in disposing of material solar farm assets to meet debt maturities over the next 12 months. GNE's parent, GCL-Poly Energy Holdings Ltd., faces increasing strain on its ability to repay debt because of continued breaches of financial covenants, material reliance on short-term borrowings, and weak cash generation. On April 8, 2020, S&P Global Ratings lowered its long-term issuer credit ratings on GNE to 'CCC' from 'B-'. We also lowered the issue rating on the China-based solar farm operator's senior unsecured notes to 'CCC-' from 'CCC+'. The negative outlook on GNE reflects our view that the already weak liquidity of GNE and GCL-Poly could deteriorate over the next 12 months. HONG KONG (S&P Global Ratings) April 8, 2020-- S&P Global Ratings today took the rati

FBS SpA ABOVE AVERAGE Residential, Commercial And Unsecured Consumer Loans Special Servicer Rankings Affirmed

We affirmed our overall ABOVE AVERAGE rankings on FBS SpA as a special servicer of residential mortgages, commercial mortgages, and unsecured consumer loans. FBS SpA is a special servicer registered under article 106 as a financial intermediary. The company was founded in 1997 and is based in Milan, Italy. Since Jan. 7, 2019, FBS SpA has been operating as a subsidiary of Banca IFIS S.p.A. managing several asset classes as special servicer. The outlooks are stable. MILAN (S&P Global Ratings) April 8, 2020--S&P Global Ratings today affirmed its overall ABOVE AVERAGE rankings on FBS SpA (FBS) as a special servicer of residential mortgages, commercial mortgages, and unsecured consumer loans in Italy. Our outlook on each ranking is stable. Our rankings reflect: The high level of commitment and support from its new parent company, Banca IFIS (IFIS), which acquired 90% of FBS in January 2019 and the remainder in October 2019. IFIS is supportive of operational con

Bank Polska Kasa Opieki S.A. Outlook Revised To Stable Following Action On Shareholder PZU; 'BBB+/A-2' Ratings Affirmed

On April 6, 2020, we revised our outlook to stable from positive on Poland's largest domestic insurer Powszechny Zaklad Ubezpieczen S.A. (PZU; A-/Stable/--), which is the dominant shareholder and a likely source of support for Bank Polska Kasa Opieki S.A. (Bank Pekao). We believe that the currently difficult 2020 economic environment, combined with COVID-19 spread countermeasures in Poland, will delay earnings and efficiency improvement plans at Bank Pekao. We are consequently revising our outlook on Bank Pekao to stable from positive and affirming our 'BBB+/A-2' ratings. The stable outlook reflects that on PZU, in accordance with our view that Bank Pekao will remain a moderately strategic investment of PZU and is likely to benefit from potential capital support or risk transfer if needed. FRANKFURT (S&P Global Ratings) April 8, 2020--S&P Global Ratings said today that it revised its outlook on Poland-based Bank Polska Kasa Opieki S.A. (Bank Pekao)

TPC Group Inc. Downgraded To 'B-' On Reduced Demand; Ratings Off CreditWatch; Outlook Negative

In addition to challenges following its plant explosion and rebuild at its Port Neches, Texas, facility, we anticipate a global economic slowdown in 2020 will hurt demand for synthetic rubber in key end markets such as automotive, which will weaken credit measures. As a result, we are lowering our issuer credit rating on TPC Group Inc. to 'B-' from 'B' and removing it from CreditWatch with negative implications. The outlook is negative. At the same time, we are lowering our issue-level rating on the company's senior secured notes to 'B-' from 'B' and removing it from CreditWatch. The recovery rating remains '4', indicating our expectation of average (30%-50%; rounded estimate: 30%) recovery in the event of a payment default. The negative outlook reflects the risks that macroeconomic conditions could weaken more than we anticipate, combined with uncertainty around timing and amount of receiving insurance proceeds, which could

Ratings Affirmed On Seven Classes From BBCMS 2016-ETC Mortgage Trust

We reviewed and affirmed our ratings on seven classes from BBCMS 2016-ETC Mortgage Trust, a U.S. CMBS single-borrower transaction comprising a portion of an interest-only mortgage whole loan. Our analysis included a reevaluation of the retail property securing the loan and a review of the transaction structure and liquidity available to the trust. While COVID-19 will likely have an accelerated effect on performance declines for certain properties, especially those with retail and lodging exposure, today's rating actions do not specifically address the outbreak of the virus. FARMERS BRANCH (S&P Global Ratings) April 7, 2020--S&P Global Ratings today affirmed its ratings on seven classes of commercial mortgage pass-through certificates from BBCMS 2016-ETC Mortgage Trust, a U.S. CMBS transaction (see list). This is a stand-alone, single-borrower transaction backed by a portion of a fixed-rate interest-only (IO) whole loan secured by 1.3 million sq. ft. of a

FMSbonds Inc. And Mesirow Financial Inc. Ratings For Various Receipt Series Lowered To 'A-' And 'A-/A-2'

NEW YORK (S&P Global Ratings) April 7, 2020--S&P Global Ratings lowered its ratings on 15 tender-option bond trust issues floaters and residuals for FMSbonds Inc.'s series 2016-ZF0500, 2017-ZM0509, 2016-XF0499, 2017-XF2419, 2017-XF2419, 2015-ZF0218, and 2017-XF0591 and Mesirow Financial Inc.'s series 2017-ZM0509, related to various underlying bonds, to 'A-' and 'A-/A-2', respectively, from 'A' and 'A/A-1'. FMSbonds Inc. And Mesirow Financial Inc. Ratings For Various Receipt Series Lowered Issue New rating Previous rating CUSIP Nos. Underlying CUSIP Nos. Liquidity provider FMSbonds Inc. (Metropolitan Transp Auth) Puttable Ser 2016-ZF0500 re Metropolitan Transportation Authority, Transportation Rev Bonds, Ser 2016C A-/A-2 A/A-1 88033UAU3 59261AHP5 Toronto-Dominion Bank (The) FMSbonds Inc. (Metropolitan Transp Auth) Inverse Ser 2016-ZF0500 re Metropolitan Transportation Authority, Transportatio

Johnsburg Village, IL GO Bond Rating Lowered To 'AA-' From 'AA' On Weakened Reserves; Outlook Is Negative

CHICAGO (S&P Global Ratings) April 7, 2020--S&P Global Ratings has lowered its rating on the Village of Johnsburg, Ill.'s general obligation (GO) debt to 'AA-' from 'AA'. S&P Global Ratings has also assigned its 'AA-' rating to the village's series 2020A and 2020B GO alternate revenues source bonds. The outlook is negative. "The downgrade reflects our view of Johnsburg's materially weakened reserves following fund balance drawdowns in fiscal 2019," said S&P Global Ratings credit analyst Alexander Vargas. Although management reports that fiscal 2020 will result in an improved reserve position, we believe the village's reliance on state sales taxes causes uncertainty in revenue collections, given our view of the onset of a global recession, potentially creating further misalignment between revenue and expenditures.  Although the rating action is not related to the COVID-19 pandemic, we believe the ensuing rec

Jackson, MS Special Obligation Bonds Assigned 'A' Rating

FARMERS BRANCH (S&P Global Ratings) April 7, 2020--S&P Global Ratings assigned its 'A' long-term rating to the Mississippi Development Bank's $33.2 million series 2020 special obligation bonds, issued for the City of Jackson. The outlook is stable. Proceeds of the bonds will be used for various purposes, including for road/street improvements as well as for water/sewer and drainage projects throughout the city. "The rating reflects our view of the city's adequate-to-weak local economy, adequate coverage, and low revenue volatility on the broad-based special sales tax," said S&P Global Ratings credit analyst Joshua Travis. The stable outlook reflects that, despite an economic shutdown within the city related to COVID-19, we do not expect pledged revenue declines to be sustained at significantly weaker levels. While we continue to monitor events related to COVID-19, we do not expect them to affect the city's ability to pay debt s

Reynolds Group Holdings Ltd. Ratings Affirmed; Outlook Revised To Negative

We expect the COVID-19 pandemic to negatively impact Reynolds Group Holdings Ltd. (RGHL) businesses, with the closures of restaurants, schools, and other institutions, which will result in lower revenues and profit for the company this year, but the magnitude of the impact is uncertain. As a result, we are affirming our 'B+' issuer credit rating on RGHL and revising our outlook to negative from stable. All other ratings on RGHL's debt are unchanged. The negative outlook reflects the heightened risk the company's revenues will be severely affected by responses to stem the spread of COVID-19, limiting EBITDA and cash flows this year and causing the company's adjusted debt to EBITDA to rise above 7x in fiscal 2020. NEW YORK (S&P Global Ratings) April 7, 2020--S&P Global Ratings today took the rating actions listed above. The COVID-19 pandemic has affected RGHL's end markets at the end of the first quarter and we expect this to continue for

Fly Leasing Ltd. Outlook Revised To Negative From Stable; Ratings Affirmed

We believe that Fly Leasing Ltd., like other aircraft leasing companies, will generate materially less revenues in 2020 than we previously expected, reflecting the impact of the COVID-19 pandemic on its airline customers. This will be caused by the negotiated deferral of lease rentals from some customers, bankruptcy and the return of aircraft by others, and lower lease rates in a weak market. Still, aircraft lessors are in a better position than airlines because their lease contracts require payment regardless of whether the planes are in use. Bankrupt airlines, if they can reorganize, may be more inclined to keep leased planes because they are mostly newer and more fuel-efficient models. We are affirming our 'BB' issuer credit rating on Fly Leasing Ltd., and revising our outlook to negative from stable. The issue-level rating on Fly Funding II S.a.r.l's secured term loan of 'BBB-' and on Fly's senior unsecured notes of 'BB' are unchange

Jason Inc. Downgraded To 'SD' From 'CCC' Following Missed Interest Payment

U.S.-based industrial products manufacturer Jason Inc. elected not to make the quarterly interest payment due March 31, 2020 on its second-lien term loan and has entered into a forbearance agreement with its first-lien lenders. We believe that the company's decision to defer the interest payment was the first step of a broader negotiation with all lenders to recapitalize the company. As a result, we are lowering our issuer credit rating on Jason to 'SD' (selective default) from 'CCC'. At the same time, we are lowering our issue-level rating on the company's first-lien credit facilities to 'CC' from 'CCC' and our issue-level rating on its second-lien term loan to 'D' from 'CC'. CENTENNIAL (S&P Global Ratings) April 7, 2020—S&P Global Ratings today took the rating actions listed above. The downgrade follows Jason's decision to not make the $2.3 million interest payment due on its $89.9 million outstandi

GICSA Ratings Lowered To 'BB-' And 'mxA-' On Higher Leverage And Growing Risk From COVID-19; Ratings On Watch Negative

We believe Grupo GICSA, S.A.B de C.V. (GICSA) will face unprecedented cash flow headwinds, at least over the next 30 days, because the Mexican government has adopted sanitary measures to counter the spread of COVID-19, resulting in major tenants of shopping malls temporarily closing stores. In this scenario, we no longer see a likely deleveraging path in the next 12 months for GICSA to decrease its gross debt to EBITDA to below 7.5x, because the company's EBITDA will be weakened from the temporary closure in shopping malls and lack of new sales in its residential project. On April 7, 2020, S&P Global Ratings lowered its global scale issuer credit ratings on GICSA to 'BB-' from 'BB' and the national scale ratings to 'mxA-' from 'mxA'. Additionally, we also lowered the issue-level ratings on GICSA's local notes GICSA 15, GICSA 16U, GICSA 17, and GICSA 19 to 'mxA-', while their recovery ratings remain at '3'. We

Lions Gate Entertainment Corp. Ratings Affirmed, Outlook Revised To Negative

Lions Gate Entertainment Corp.'s fiscal 2021 theatrical and television production and release schedules have been delayed due to the negative social impacts from COVID-19, resulting in lower revenue and cash flow expectations over the next 12 months. In addition, we corrected an error in how we calculate the company's leverage ratio and cash flow metrics. Under our prior analysis, we incorrectly excluded Lions Gate's working capital asset monetization program from our debt adjustments. As corrected, we now exclude these asset sale proceeds from adjusted operating cash flows and add the ongoing serviced obligations to our debt adjustments. Although this revision in our credit metrics increases leverage, it does not change our assessment of Lions Gate's financial risk as 'highly leveraged', which denotes the maximum degree of financial risk under our methodology. S&P Global Ratings' affirmed all its ratings on Lions Gate including its '

DeKalb County R-I School District (Maysville), MO COP Ratings Lowered One Notch On Weakened Financial Flexibility

CENTENNIAL (S&P Global Ratings) April 7, 2020--S&P Global Ratings lowered its issuer credit rating (ICR) to 'A' from 'A+' and its long-term rating to 'A-' from 'A' on DeKalb County R-I School District (Maysville), Mo.'s outstanding certificates of participation (COPs), due to decreasing reserves that we no longer believe to be comparable with those of similarly rated peers. The outlook is stable. "The downgrade reflects our view that the district exhibits weakened financial flexibility compared with similarly rated peers and that current economic conditions could result in continued negative operating results," said S&P Global Ratings credit analyst Augustin Kazakevicius. "In addition, local economic indicators have declined, further pressuring the district's overall credit profile." Located in northwestern Missouri, the already limited local economy has experienced significant declines in its income

Peninsula Regional Health System, MD 2020 Revenue Bonds Rated ‘A’; Outlook Stable

CENTENNIAL (S&P Global Ratings) April 7, 2020--S&P Global Ratings assigned its 'A' long-term rating to Maryland Health & Higher Educational Facilities Authority's $103 million series 2020 revenue bonds, issued for Peninsula Regional Health System (PRHS). At the same time, we affirmed our 'A' long-term rating on the series 2015 bonds issued for PRHS. The outlook is stable. In addition, S&P Global Ratings raised its long-term rating on Nanticoke Memorial Hospital to 'A' from 'BBB'. The outlook is stable. The upgrade reflects our view of Nanticoke's completion of the merger with PRHS in January 2020, and our view that Nanticoke is core to PRHS under our "Group Rating Methodology" criteria (published July 1, 2019). "The rating reflects our view of PRHS' dominant market position in its primary service area, consistently solid pro forma maximum annual debt service coverage, and a healthy balance sheet, with mod

Ventia Pty Ltd. Ratings Lowered To 'BB' On Higher Financial Risk Appetite; Outlook Stable

We believe there has been a step-change in Ventia Pty Ltd.'s financial risk appetite, as indicated by significantly weaker credit metrics of adjusted debt to EBITDA increasing to about 4.8x in the year ending Dec. 31, 2019, compared with below 4x since the company was established in fiscal 2015. Furthermore, we expect Ventia's leverage to remain elevated at about 5x in 2020 due to the debt-funded acquisition of Broadspectrum Pty Ltd., which is pending regulatory approval. As a result, we have revised our assessment of the company's financial risk profile to reflect the increased financial risk appetite. On April 8, 2020, S&P Global Ratings lowered its issuer credit rating on Ventia to 'BB' from 'BB+', and lowered its related issue ratings on the company's debt to 'BB' from 'BB+'. Recovery ratings on the debt remain unchanged at '4'. The stable outlook reflects our expectation that the company will successfully integrate it

New South Wales Treasury Corp. Outlook Revised To Negative After Similar Action On State; 'AAA/A-1+' Ratings Affirmed

On April 8, 2020, we revised our outlook on the State of New South Wales to negative from stable after a similar action on the Commonwealth of Australia. We are consequently revising our outlook on TCorp to negative from stable, reflecting that on the state. At the same time, we are affirming our 'AAA/A-1+' ratings on TCorp. TCorp's debt obligations are guaranteed by New South Wales. Our ratings on TCorp continue to reflect our assessment that there is an almost-certain likelihood that NSW would provide it with extraordinary support in a distress scenario. MELBOURNE (S&P Global Ratings) April 8, 2020--S&P Global Ratings today revised its outlook on New South Wales Treasury Corp. (TCorp) to negative from stable. At the same time, we affirmed our 'AAA/A-1+' long- and short-term issuer credit ratings on TCorp. The negative outlook on TCorp reflects that on its owner, the State of New South Wales. We could lower our ratings on TCorp during the next two y

Australian Capital Territory Outlook Revised To Negative After Similar Action On The Sovereign; Ratings Affirmed

On April 8, 2020, we revised our outlook on Australia (AAA/A-1+) to negative from stable. We are consequently revising our outlook on ACT to negative from stable because we believe no Australian state or territory can maintain stronger credit characteristics than the sovereign in a stress scenario. At the same time, we are affirming our 'AAA/A-1+' long- and short-term ratings on the ACT. We could lower our ratings on ACT if we were to take similar action on Australia during the next two years. Rating Action On April 8, 2020, S&P Global Ratings revised its outlook on the long-term ratings on the Government of Australian Capital Territory (ACT) to negative from stable. At the same time, we affirmed our 'AAA/A-1+' local- and foreign-currency ratings on the ACT. Outlook The negative outlook on ACT reflects that on the Australian sovereign. Downside scenario We could lower our long-term ratings on ACT during the next two years if we were to do the same fo