BOSTON (AI Credit Rating Terminal) Wed Apr 22 2020 10:50:01 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We downgraded THT Heat Transfer Technology, Inc. because of the firm's business is modestly more concentrated than average for peers, and the concentration represents modest incremental risk above what is captured in the anchor, but it is not a key credit weakness. We use econometric methods for period (n+7) simulate with Hartley Oscillator Sign Test. Reference code is: 4569. Beta DRL value REG 33 Rational Demand Factor LD 3576.0395999999996. For these reasons, although the criteria establish no rating threshold for liquidity, we typically expect: Instances of 'B+' and below rated issuers achieving liquidity descriptors higher than adequate to be rare and Few companies to qualify for the exceptional category, and these entities to typically have issuer credit ratings of 'BBB-' or above.

BOSTON (AI Credit Rating Terminal) Wed Apr 22 2020 10:35:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We downgraded CDW Corporation because Internal models approach when no breakdown by component is available. We use econometric methods for period (n+7) simulate with Volume + Moving Average Wilcoxon Rank-Sum Test. Reference code is: 2092. Beta DRL value REG 22 Rational Demand Factor LD 3576.0395999999996. Dividends and share repurchases. Our liquidity uses include dividends and share repurchases that we expect under a stress scenario. Unlike other potential uses of liquidity, such as debt maturities or maintenance capital spending, we view dividends and share repurchases as more discretionary, although more so for the latter. For this reason, when evaluating a company's liquidity position, we may use a lower estimate of dividends and shareholder repurchases than in our base-case forecast based on our vi

We expect SHKPI to maintain its satisfactory capital position amid challenging investment market conditions, helped by its consistently sound underwriting profit and the flexible capital management measures of its parent, SHKP. In our view, SHKPI will continue to receive parental support from SHKP, particularly in the event of financial distress. We are affirming our 'A-' local currency long-term financial strength and issuer credit ratings on SHKPI. The stable outlook on SHKPI reflects our view that the insurer will remain a moderately strategic entity of SHKP, with better-than-peer underwriting performance over the next two years. HONG KONG (S&P Global Ratings) April 22, 2020--S&P Global Ratings today affirmed its 'A-' local currency long-term insurer financial strength and issuer credit ratings on Sun Hung Kai Properties Insurance Ltd. (SHKPI). The outlook is stable. Hong Kong-based SHKPI is a wholly owned subsidiary of Sun Hung Kai Properties Ltd. (SH

Takko has temporarily closed most of its stores, as a result of government measures to contain the spread of the coronavirus, so we anticipate a meaningful decline in cash flow and earnings for the current fiscal year. We believe the decline in cash generation over the next few months will weaken the company's liquidity position, if the market disruption persists for longer than we currently expect. We expect Takko to face rapidly tightening covenant headroom and weakening credit ratios, potentially necessitating lenders' agreement to waive the covenant temporarily. We are therefore lowering our ratings on Takko and its senior secured debt to 'CCC+' from 'B-'. The negative outlook reflects our view that the group's ability to service its financial commitments could be further strained if the current situation prevails for longer and causes Takko's liquidity to weaken, increasing the risk of a distressed exchange offer on any of the group's debt,

Greenko Energy Holdings' stabilizing operating performance and continued support for growth from sponsor GIC will limit further increase in the company's already high leverage. A high interest burden and exposure to payment delays from weak counterparties continue to weigh on the India-based renewable energy company. On April 22, 2020, S&P Global Ratings affirmed its 'B+' long-term issuer credit rating on Greenko and its 'B+' long-term issue rating on the senior secured notes the company guarantees. The stable outlook reflects our expectation that Greenko will maintain stable operating performance, appropriately manage its receivables, and receive support from GIC for growth and capital over the next 12-18 months. SINGAPORE (S&P Global Ratings) April 22, 2020--S&P Global Ratings today took the rating actions listed above. We affirmed the rating on Greenko because we expect the company's stabilizing operating performance on a larger and mor

BOSTON (AI Credit Rating Terminal) Wed Apr 22 2020 10:20:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We downgraded Texas Pacific Land Trust Common Stock reduce equity by the amount of unrecognized losses, after tax. This adjustment adds the surplus to reported capital when calculating ACE and TAC. We deduct from capital that amount of the surplus that we view as unrealizable. . We use econometric methods for period (n+30) simulate with Voltage Controlled Oscillator Ridge Regression. Reference code is: 4637. Beta DRL value REG 15 Rational Demand Factor LD 3576.0395999999996. Cash and liquid investments. When determining the cash to be included under sources (A), we use cash that will be available to cover monetary outflows. As a result, we may make haircuts to account for cash trapped overseas (for example, haircut for taxes payable upon repatriation of cash held abroad), apply a discount to lower-quality m

BOSTON (AI Credit Rating Terminal) Wed Apr 22 2020 10:05:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We downgraded Sirca Paints India Limited explicitly excluded by regulation from those liabilities that may be bailed in if the obligor enters a bail-in resolution. We use econometric methods for period (n+30) simulate with EMR ANOVA. Reference code is: 3362. Beta DRL value REG 15 Rational Demand Factor LD 3576.0395999999996. In this scenario, we would still include the existing debt maturity as a use of liquidity in our A/B and A-B calculations, if the debt matures within the corresponding liquidity horizon. The rationale is that our liquidity assessment is essentially a stress test against a sudden and severe loss of capital markets access availability. For companies with an anchor of at least 'bbb-' that meet certain characteristics, as outlined in paragraphs 38 and 39 of the criteria, we may use a

Corestate's business development is unlikely to be as buoyant as we previously assumed due to the economic slowdown related to COVID-19 and the resulting impact on Corestate's revenues. In our view, this situation will delay the company's deleveraging and we no longer believe a material reduction is feasible in 2020. We are therefore revising our outlook on Corestate to stable from positive and affirming our 'BB+' long-term issuer credit rating. The stable outlook reflects our expectation that, over the next 12-18 months, Corestate will stay committed to its strategy to decrease leverage, although it may take more time than initially expected. FRANKFURT (S&P Global Ratings) April 22, 2020--S&P Global Ratings said today that it revised its outlook to stable from positive on Luxembourg-based real estate asset manager CORESTATE Capital Holding S.A. (Corestate). The 'BB+' long-term issuer credit rating was affirmed. The outlook revision follows

Future Retail Ltd. faces increasing pressure to meet upcoming debt obligations given its stressed liquidity position, exacerbated by the extended lockdown in India due to COVID-19. The India-based retailer is dependent on an improvement in business conditions or improved liquidity from additional credit lines to meet its immediate financial obligations. On April 22, 2020, S&P Global Ratings lowered its preliminary long-term issuer credit rating on Future Retail and the preliminary long-term issue rating on the company's US$500 million senior secured notes to 'CCC-' from 'B-'. The ratings remain on CreditWatch with negative implications. We are keeping our ratings on Future Retail on CreditWatch negative to reflect the company's weakening debt-servicing ability and the likelihood that Future Retail or its related entities will restructure its debt within the next few months. SINGAPORE (S&P Global Ratings) April 22, 2020--S&P Global Ratings toda

BOSTON (AI Credit Rating Terminal) Wed Apr 22 2020 09:50:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We downgraded Mattress Firm Holding Corp. derivatives receivables represent more than 5% of total assets for entities reporting under IFRS (or under local GAAP similar to IFRS for the accounting of derivatives) and are domiciled in countries for which our BICRA group is '5' and above.. We use econometric methods for period (n+7) simulate with Royer Oscillators Paired T-Test. Reference code is: 1972. Beta DRL value REG 32 Rational Demand Factor LD 3576.0395999999996. Likewise, we do not consider factoring programs under sources of liquidity. Unlike asset-based lending (ABL) facilities, factoring is more of a sales transaction and not a loan. In addition, these transactions tend to be very short term. For this reason, we would not consider them a committed source of future liquidity over a 12-month per

BOSTON (AI Credit Rating Terminal) Wed Apr 22 2020 09:35:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We downgraded Qumu Corporation because of the level of the two metrics relative to the entity's credit and market risks. We use econometric methods for period (n+30) simulate with Speculation Beta. Reference code is: 1808. Beta DRL value REG 39 Rational Demand Factor LD 3576.0395999999996. Investments should be able to be quickly liquidated without requiring deep discounts to their carrying value. This does not preclude long-term investments from being included. It does, however, exclude large stakes in non-liquid equity investments. Credit 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.

BOSTON (AI Credit Rating Terminal) Wed Apr 22 2020 09:20:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We downgraded Urstadt Biddle Properties Inc. Preferred Stock Series G 6.75% because of vulnerability of the two metrics to changes in operating conditions. We use econometric methods for period (n+1) simulate with Bollinger Bands %B Sign Test. Reference code is: 4683. Beta DRL value REG 46 Rational Demand Factor LD 3576.0395999999996. The EBITDA declines companies would have to withstand and still have defined sources cover defined uses are as follows for each liquidity descriptor: Adequate: Positive A-B, even if forecasted EBITDA declines by 30%.Weak: A/B or A-B reflecting a material deficit over the next 12 months. Credit 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 R

BOSTON (AI Credit Rating Terminal) Wed Apr 22 2020 09:05:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We downgraded Stanley Black & Decker, Inc. Corp Unit 2013 because of capital metrics would not be eroded by any of the following: repayment of government-contributed equity, recognition of any currently unrecognized economic losses, reduction from capital the amount necessary to appropriately capitalize any materially undercapitalized unconsolidated subsidiaries, and reversal of any property valuation adjustment. We use econometric methods for period (n+30) simulate with Bollinger Bands ANOVA. Reference code is: 2252. Beta DRL value REG 34 Rational Demand Factor LD 3576.0395999999996. The various qualitative factors in the criteria help to identify strengths and weaknesses within a company's future liquidity position that numerical ratios might not fully capture. While there is no size bias in our li

BOSTON (AI Credit Rating Terminal) Wed Apr 22 2020 08:50:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We downgraded BioLife Solutions, Inc. because the liabilities' resolution-driven default is unlikely because of all of the following: The type of liability is earmarked in the resolution framework for potential exclusion from bail-in at the discretion of the national regulator, other creditors in our view are unlikely to legally challenge such an exclusion. We use econometric methods for period (n+7) simulate with Clapp Oscillators Simple Regression. Reference code is: 4323. Beta DRL value REG 13 Rational Demand Factor LD 3576.0395999999996. In determining how prudent a company's risk management is, we look for evidence that management has historically anticipated potential company-specific or market-related setbacks and has taken necessary actions to ensure sufficient liquidity. Credit Rating AI Pr

JAB Holding Company S.a.r.l.'s (JAB's) unwinding of the Cottage special purpose vehicle (SPV) by repaying the $1.77 billion loan with cash marks the end of another failed attempt to revive Coty's equity and credit story. We still expect the proposed JDE-Peet's Coffee initial public offering (IPO) to happen in 2020, which would benefit the liquidity and diversity of JAB's portfolio. We expect liquidity will remain robust in 2020, but estimate that the loan-to-value (LTV) ratio is currently above the 20% threshold we see as commensurate with the current rating. Therefore, we are revising the outlook to negative from positive and affirming the 'A-' issuer credit and issue ratings on JAB and debt issued by JAB Holdings B.V. The negative outlook reflects the risk of a downgrade if we estimate that JAB is unable to reduce its LTV well below our 20% threshold by year-end 2020, for example, due to weaker performance at its businesses following the recent materi

BOSTON (AI Credit Rating Terminal) Wed Apr 22 2020 08:35:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We downgraded Eaton Vance Municipal Income Term Trust Common Shares of Beneficial Interest because of strategic positioning, operational performance, organizational effectiveness, risk and financial management, and governance. We use econometric methods for period (n+1) simulate with Opto-Electronic Oscillators Simple Regression. Reference code is: 2238. Beta DRL value REG 37 Rational Demand Factor LD 3576.0395999999996. If a company has a credit put that causes debt acceleration or collateral posting due to a downgrade of three notches or less, we would include these requirements under uses of liquidity, per paragraph 30 of the liquidity criteria. For example, if a 'BBB' rated company had a credit put that was triggered with a downgrade to speculative grade, we would include the corresponding cash r

We expect a significant decline in demand for luxury watches in 2020 due to lockdowns in China, the U.S., and across Europe and lower consumer confidence due to the COVID-19 pandemic. We assume Breitling's sales will drop by 20%-25% in FY 2021 (ending March 31, 2021) and leverage will increase to 9x-10x in FY 2021 versus 6.0x-6.5x for FY 2020, according to our preliminary estimates. We are therefore lowering our ratings on Breitling Holdings S.a.r.l. and its CHF 564 million Term Loan B to 'B-' from 'B'. The stable outlook reflects our view that, despite reduced covenant headroom, Breitling should not face material liquidity pressures in the next 12 months, thanks to CHF140 million-CHF145 million of available cash on hand on March 31, 2020. MILAN (S&P Global Ratings) April 22, 2020—S&P Global Ratings today took the rating actions listed above. The COVID-19 pandemic will interrupt Breitling's solid growth and push up leverage, which we now expect

We believe store closures and slower global consumer discretionary spending because of the COVID-19 pandemic will hurt the sales and cash flow of U.S. cosmetics accessories company pH Beauty Holdings I Inc. As a result, we are revising our outlook on pH Beauty to negative from positive and are affirming our 'B-' issuer credit rating on the company. The negative outlook reflects the risk that we could lower the rating on pH Beauty over the next 12 months if the company's operating performance decline is more severe than we currently forecast because of the COVID-19 pandemic and global recession, leading us to believe that the company's capital structure is unsustainable. NEW YORK (S&P Global Ratings) April 21, 2020—S&P Global Ratings today took the rating actions listed above. The negative outlook reflects our expectation for a deterioration in sales and EBITDA, resulting in weak interest coverage and covenant pressure.   We believe a global recession and

The coronavirus pandemic has caused widespread stress on the retail and restaurant sectors. The stress on FOCUS Brands Funding LLC is particularly severe due to FOCUS Brands Inc.'s (Focus') substantial presence in malls and other locations that are closed or have experienced steep traffic declines. We expect the FOCUS Brands Funding LLC transaction to experience a substantial near-term cash flow decline caused by store closures and weak traffic. We also believe Focus' overall sales recovery profile may be more prolonged than that of other restaurant brands due to its outsized exposure to malls and other locations consumers may be slow to return to once stringent social distancing precautions are lifted. We are placing our ratings on four notes issued by FOCUS Brands Funding LLC on CreditWatch with negative implications. The CreditWatch placement reflects our expectation of significant and potentially prolonged declines in store revenue for domestic and intern

SAN FRANCISCO (S&P Global Ratings) April 21, 2020--S&P Global Ratings assigned its 'AAA' long-term rating to the Georgia Housing and Finance Authority's (GHFA) single-family mortgage bonds, 2020 series A (non-AMT). At the same time, we affirmed our 'AAA' long-term rating on all debt issued under GHFA's single-family mortgage bond resolution (the 1976 general resolution). The outlook is stable. GHFA will use the 2020 series A bond proceeds to purchase new single-family mortgage loans, refund certain prior bonds that it issued, fund down payment assistance loans, and pay costs of issuance. "The 'AAA' rating reflects our view of the following the very strong credit quality of the collateral securing the bonds, cash flow scenarios that demonstrate sufficient excess assets after our loan-loss projections, strong asset management oversight, and fully funded reserves and sufficient liquidity," said S&P Global Ratings credit analyst Au

SAN FRANCISCO (S&P Global Ratings) April 21, 2020--S&P Global Ratings revised the outlook to stable from negative and affirmed its 'AA' senior-lien long-term rating and underlying rating (SPUR) and its 'AA-' subordinate-lien long-term rating on Sacramento Municipal Utility District's (SMUD) previously issued electric revenue bonds. At the same time, we assigned our 'AA' long-term rating to SMUD's proposed senior-lien $350 million series 2020H electric revenue bonds. "The outlook revision reflects our updated assessment of SMUD's overall wildfire risk profile as informed by our review of its revised Wildfire Mitigation Plan taken in conjunction with SMUD's specific wildfire exposure as measured against system reserves, insurance coverage, and prudent ongoing investments in wildfire mitigation," said S&P Global Ratings credit analyst Paul Dyson. "We also believe SMUD is well positioned to withstand potential financia

Ticketek's (rated entity TEG Pty Ltd.) revenue continues to decline significantly due to the postponements and cancellations of major sporting and entertainment events in Australia and New Zealand amid the COVID-19 outbreak. The magnitude and severity of this impact depend on the duration of the Australian federal, state, and territory governments' restrictions on nonessential indoor gatherings. We expect TEG's EBITDA generation to severely reduce, causing leverage and free operating cash flow in the year ending June 30, 2020, to be outside of our base-case assumptions and above our tolerances for the previous 'B' rating. On April 22, 2020, S&P Global Ratings lowered its issuer credit rating on TEG to 'B-' from 'B'. At the same time, we lowered the related issue rating on the company's US$285 million first-lien term loan B (consisting of a US$205 million tranche and A$118.2 million tranche) to 'B-' from 'B' with a recovery