Skip to main content

Posts

Showing posts from April 29, 2020

Cynosure, Inc. Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Apr 30 2020 10:50:01 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We downgraded Cynosure, Inc. because the steps to carry out a bail-in of that type of liability would involve such high operational complexities that would make its bail-in unlikely in a reasonable time. We use econometric methods for period (n+7) simulate with Penetration Sign Test. Reference code is: 1697. Beta DRL value REG 30 Rational Demand Factor LD 3943.9512. Under times of stress, such actions could include dividend cuts, suspension of share repurchases, or maintenance of minimum cash balances. This is particularly relevant for exceptional and strong assessments, where issuers are required to carry higher levels of excess liquidity even during times of stress. For example, when assessing liquidity, we would generally expect companies to be able to cover the full amount of dividends and share repurcha

Nordic Materials Distributor Quimper (Ahlsell) Outlook Revised To Negative On Likely Weaker Demand; 'B' Rating Affirmed

Despite relatively mild COVID-19 restrictions in Nordic countries, Ahlsell will face lower demand in 2020 and we believe its operating performance will be weaker than in 2019, when it generated EBITA of SEK2.5 billion. In 2019, Ahlsell's financial leverage was already high at 6.8x, with adjusted debt at SEK22.5 billion and limited rating headroom. We are therefore revising our outlook on Quimper AB, Ahlsell's intermediate parent, to negative from stable, and affirming our 'B' long-term issuer credit rating. The negative outlook indicates risks that the economic impact from COVID-19 could be more pronounced than in our base case, leading to a further weakening of Ahlsell's credit metrics and cash flows. PARIS (S&P Global Ratings) April 30, 2020--S&P Global Ratings today took the rating actions listed above. Macroeconomic data indicates a GDP contraction in the Nordic region. We expect GDP in the eurozone to shrink by 7.3% this year before rebounding

Tecogen Inc. Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Apr 30 2020 10:35:01 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We downgraded Tecogen Inc. because of emergence of unexpected operational risks regularly affects earnings or cash flow. We use econometric methods for period (n+1) simulate with Rank Correlation Index (RCI) Factor. Reference code is: 4070. Beta DRL value REG 43 Rational Demand Factor LD 3943.9512. When assessing strong or exceptional liquidity, we include all forecasted capital expenditures over the next 24 months, including discretionary growth capital spending. 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.

iShares PHLX SOX Semiconductor Sector Index Fund Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Apr 30 2020 10:20:01 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We downgraded iShares PHLX SOX Semiconductor Sector Index Fund derivatives receivables represent more than 0.5% of total assets for entities reporting under U.S. GAAP. We use econometric methods for period (n+30) simulate with Electron Coupled Oscillators Stepwise Regression. Reference code is: 4820. Beta DRL value REG 19 Rational Demand Factor LD 3943.9512. While we only include contractual acquisitions when calculating A/B and A-B, when evaluating qualitative factors, we focus more on a company's track record and our expectation for financial management. In this respect, the quantitative and qualitative factors under the liquidity criteria are meant to complement each other and produce a more comprehensive view of a company's future liquidity position. Credit Rating AI Process rely on primary sourc

PT Alam Sutera Realty Tbk. Downgraded To 'CCC+' On Heightened Refinancing Risk; Outlook Negative

Indonesia-based property developer PT Alam Sutera Realty Tbk.'s refinancing plans for its US$175 million senior unsecured notes due April 2021 will be delayed by the COVID-19 outbreak. In our view, without an improvement in Alam Sutera's operating conditions and the funding environment, the company's funding options will become increasingly limited. On April 30, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Alam Sutera to 'CCC+' from 'B-'. At the same time, we lowered the issue rating on the company's guaranteed senior unsecured notes to 'CCC+' from 'B-'. All ratings have been removed from CreditWatch, where they were placed with negative implications on March 24, 2020. The negative outlook on Alam Sutera indicates the prospect of a further downgrade by the third quarter of 2020 in the absence of concrete refinancing progress. SINGAPORE (S&P Global Ratings) April 30, 2020--S&P Global Ratings tod

Bed Bath & Beyond Inc. Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Apr 30 2020 10:05:01 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We downgraded Bed Bath & Beyond Inc. because the steps to carry out a bail-in of that type of liability would involve such high operational complexities that would make its bail-in unlikely in a reasonable time. We use econometric methods for period (n+30) simulate with Anomaly Factor. Reference code is: 2853. Beta DRL value REG 37 Rational Demand Factor LD 3943.9512. While we only include contractual acquisitions when calculating A/B and A-B, when evaluating qualitative factors, we focus more on a company's track record and our expectation for financial management. In this respect, the quantitative and qualitative factors under the liquidity criteria are meant to complement each other and produce a more comprehensive view of a company's future liquidity position. Credit Rating AI Process rely on

Barnes & Noble, Inc. Common Stock Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Apr 30 2020 09:50:01 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We downgraded Barnes & Noble, Inc. Common Stock 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+7) simulate with Price Ridge Regression. Reference code is: 2442. Beta DRL value REG 46 Rational Demand Factor LD 3943.9512. 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 exampl

First Trust NASDAQ Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Apr 30 2020 09:35:01 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We downgraded First Trust NASDAQ because the company faces substantial refinancing risk given significant maturities. We use econometric methods for period (n+30) simulate with Pierce Oscillators Chi-Square. Reference code is: 3668. Beta DRL value REG 31 Rational Demand Factor LD 3943.9512. We do not treat repayments of leases as debt maturities (even if International Financial Reporting Standard 16 shows them as such in the cash flow statement) because we already have reduced FFO by such lease cash outflow. 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.

Aegerion Pharmaceuticals, Inc. Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Apr 30 2020 09:20:07 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We downgraded Aegerion Pharmaceuticals, Inc. 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 Price Multiple Regression. Reference code is: 2571. Beta DRL value REG 48 Rational Demand Factor LD 3943.9512. Additionally, we exclude revolver borrowing availability that we believe would be inaccessible due to covenant constraints. For revolving credit facilities with extension options, we include the extension period(s) under sources of liquidity only if the option is at the discretion of the borrower. If lenders have the option to terminate commitments a

Adani Abbot Point Terminal 'BB+' Rating Affirmed, Off CreditWatch Negative After Debt Repayment; Outlook Negative

On April 17, 2020, Adani Abbot Point Terminal Pty Ltd. (AAPT) repaid its A$100 million debt previously due in May 2020. We are affirming the 'BB+' issue credit rating on AAPT's senior secured debt. At the same time, we removed the rating from CreditWatch, where we placed it with negative implications on March 19, 2020. We also withdrew the 'BB+' rating on the A$100 million notes that had been repaid. The negative outlook reflects refinancing risk pending resolution of AAPT's A$170 million debt maturing in November 2020. SYDNEY (S&P Global Ratings) April 30, 2020—S&P Global Ratings today took the rating actions listed above. We affirmed the rating and removed it from CreditWatch to reflect AAPT's reduced immediate liquidity risk following repayment of AAPT's A$100 million debt previously due in May 2020. However, we still consider AAPT's liquidity to be less than adequate to reflect timing concerns regarding the A$170 million debt ma

Hunter Trust Repo Series No.1 Prime RMBS Assigned Rating

MELBOURNE (S&P Global Ratings) April 30, 2020--S&P Global Ratings today assigned its 'AAA (sf)' rating to the class A prime residential mortgage-backed securities (RMBS) issued by Perpetual Corporate Trust Ltd. as trustee of Hunter Trust Repo Series No.1 (see list). Hunter Trust Repo Series No.1 is a securitization of prime residential mortgages originated by Maitland Mutual Ltd. (MML, trading as The Mutual Bank). The rating assigned to the notes reflects: Our view of the credit risk of the underlying collateral portfolio, including the fact that the portfolio has a 10-year substitution period, which means that further loans may be assigned to the trust after the closing date. Our view that the credit support is sufficient to withstand the stresses we apply. Subordination and lenders' mortgage insurance cover on 23.4% of the initial loans in the portfolio provide credit support for the class A notes. Our expectation that the various mechanisms to sup

Cineworld Downgraded To 'CCC+' On Weak Liquidity And Uncertainty On When Cinemas Will Reopen; Remains On Watch Negative

We expect that the majority of U.K.-based Cineworld Group PLC's cinemas will remain shut at least until the middle of summer 2020 due to the COVID-19 pandemic, and we see a high level of uncertainty around how much cinema admissions will recover once cinemas reopen. Cineworld has weak liquidity, with current available resources only sufficient to cover its cash burn until the middle of summer 2020, and we expect that its liquidity will remain strained until the end of 2020. We are therefore lowering our long-term issuer credit rating on Cineworld and the issue ratings on its debt to 'CCC+' from 'B'. The ratings remain on CreditWatch with negative implications. We intend to resolve the CreditWatch placement once we get more clarity on whether Cineworld will succeed in obtaining additional liquidity and a covenant waiver from its lenders ahead of the next covenant test on June 30, 2020, and on the timing and scale of the cinemas reopening. The resolution of the C

FCT MTN's Proposed Singapore-Dollar Senior Unsecured Notes Rated 'BBB'

SINGAPORE (S&P Global Ratings) April 30, 2020--S&P Global Ratings today assigned its 'BBB' long-term issue rating to FCT MTN Pte. Ltd.'s proposed Singapore-dollar-denominated senior unsecured notes. The issue rating is on CreditWatch with negative implications. The issuance is under the company's S$3 billion multicurrency debt issuance program, set up in February 2017. HSBC Institutional Trust Services (Singapore) Ltd., in its capacity as trustee of Frasers Centrepoint Trust (FCT; BBB/Watch Neg/--), guarantees the notes. The rating is subject to our review of the final issuance documentation. We expect FCT to use most of the proceeds to refinance debt maturing over the next 12-24 months. This debt in turn funds general working capital and capital expenditure requirements. The three-year issuance will extend FCT's debt maturity, but is otherwise credit-neutral. On April 13, 2020, we placed our issuer credit rating on FCT and the issue rating on the compa

Spanish Gaming Company Codere Downgraded To 'CCC' From 'CCC+' On Heightened Default Risk; Outlook Negative

In our view, the risk of a default event occurring within the next 12 months has increased for Codere as the COVID-19 pandemic continues. Under our base case, we expect Codere's operations to resume in July, although we note that some jurisdictions are planning to restart gaming operations in May-June. A prolonged shutdown or a slow bounce back of cash flows could exhaust its available cash by end-July/August. We believe the company will likely breach its 4.1x net leverage covenant when tested in September 2020, absent a waiver from its lenders. We are therefore lowering to 'CCC' from 'CCC+' our issuer credit rating on Codere as well as the issue ratings on its €500 million and $300 million senior secured notes. The negative outlook reflects our view that the risk of a default event could increase in the next 12 months. If current conditions persist, there could be a liquidity shortfall if the company does not obtain additional funding, or there could be a coven

Pretium Resources, Inc. Ordinary Shares (Canada) Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Apr 30 2020 09:05:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We downgraded Pretium Resources, Inc. Ordinary Shares (Canada) because of idealized loss rates for particular credit risk assets from a substantial economic stress in developed markets. We use econometric methods for period (n+7) simulate with Pearson-Anson Oscillators Simple Regression. Reference code is: 4260. Beta DRL value REG 36 Rational Demand Factor LD 3943.9512. Larger, investment-grade issuers that have access to both public and private debt markets have greater flexibility than companies that depend solely on private bank loans. In addition, we consider whether a company can borrow on an unsecured basis, has access to the commercial paper markets, and issues debt in multiple geographies. It is more costly to raise debt in the public bond markets and often requires a company to establish a track rec

Vesey Park CLO DAC Notes Assigned Ratings

Vesey Park CLO DAC is a European cash flow CLO securitization of a revolving pool, comprising senior secured leveraged loans and bonds issued mainly by speculative-grade borrowers. Blackstone/GSO Debt Funds Management Europe Ltd. will manage the transaction. We have assigned our ratings to the class X, A1, A2-A, A2B, B, C, D, and E notes. The ratings reflect our view of the transaction's diversified collateral pool, credit enhancement, and legal structure, among other factors. LONDON (S&P Global Ratings) April 30, 2020--S&P Global Ratings today assigned its credit ratings to Vesey Park CLO DAC's class X, A1, A2-A, A2B, B, C, D, and E notes. At closing, the issuer also issued unrated subordinated notes (see list above). Under the transaction documents, the rated notes pay quarterly interest unless there is a frequency switch event. Following this, the notes will switch to semiannual payment. The portfolio's reinvestment period will end approximately 4.5 yea

APAX GLOBAL ALPHA LIMITED Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Apr 30 2020 08:50:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We downgraded APAX GLOBAL ALPHA LIMITED because market volatility after the COVID-19 outbreak makes it highly uncertain. We use econometric methods for period (n+1) simulate with Dynatron Oscillators Independent T-Test. Reference code is: 3842. Beta DRL value REG 48 Rational Demand Factor LD 3943.9512. Asset divestitures. We do not include asset sales as a source of liquidity unless they are contracted and proceeds will be received in the time period being measured under the liquidity descriptor (even when the disposed assets are reported under discontinued operations in a company's financial statements). 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 Reinforc

ON Semiconductor Corporation Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Apr 30 2020 08:35:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We downgraded ON Semiconductor Corporation because of vulnerability of the two metrics to changes in operating conditions. We use econometric methods for period (n+1) simulate with Hartley Oscillator Polynomial Regression. Reference code is: 4127. Beta DRL value REG 46 Rational Demand Factor LD 3943.9512. If we believe a company would use cash trapped at a foreign subsidiary to meet debt maturities or other liquidity uses at that foreign subsidiary, we would include this cash as a source of liquidity up to the amount of the corresponding use. We generally haircut the cash to be included under sources when a material proportion of a group's cash is held in a different part of the structure than where the debt is located, and we believe the cash may not be fully fungible within the group Credit Rating AI P

American Homes 4 Rent Participating Preferred Shares Series A Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Apr 30 2020 02:20:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We downgraded American Homes 4 Rent Participating Preferred Shares Series A because negative outlook reflects low visibility over the company's deleveraging in the next 12 months. We use econometric methods for period (n+7) simulate with Penetration Stepwise Regression. Reference code is: 4491. Beta DRL value REG 37 Rational Demand Factor LD 3943.9512. We do not assume future debt refinancing or the rolling over of CP, regardless of the company's perceived credit strength or issuer credit rating. For instance, even for investment-grade issuers, we do not assume future debt maturities are refinanced with potential uncommitted capital raises. We could, however, consider a shorter time horizon Credit Rating AI Process rely on primary sources of information: Sec Filings, Financial Statements, Credit Rati

Vail Resorts Inc. Assigned 'BB' Issuer Credit Rating; Senior Unsecured Notes Rated 'BB'; Outlook Negative

Vail Resorts Inc., owner and operator of destination mountain resorts and regional ski areas, plans to raise $600 million in senior unsecured notes to provide additional liquidity amidst the COVID-19 pandemic and global recession. We are assigning our 'BB' issuer credit rating to Vail Resorts Inc. We are assigning our 'BB' issue-level rating and '4' recovery rating to the company's proposed $600 million senior unsecured notes due 2025. The negative rating outlook reflects anticipated elevated leverage above 4x in fiscal 2020 due to property closures and our expectation that Vail's operating performance may continue to be impacted in fiscal 2021 by decreased destination travel and consumer spending. While leverage could decline modestly to the mid- to high-3x range in fiscal 2021, ratings could be pressured if ski visitation remains low or mountain closures extend or reoccur during the 2020-2021 winter season. NEW YORK (S&P Global Ratings) Apri

HDFC Bank Limited Common Stock Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Apr 30 2020 00:05:04 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We downgraded HDFC Bank Limited Common Stock because liquidity position will remain exceptionally weak over the next 12 months. We use econometric methods for period (n+30) simulate with Psychological Line (PSY) Beta. Reference code is: 3408. Beta DRL value REG 31 Rational Demand Factor LD 3943.9512. Under times of stress, such actions could include dividend cuts, suspension of share repurchases, or maintenance of minimum cash balances. This is particularly relevant for exceptional and strong assessments, where issuers are required to carry higher levels of excess liquidity even during times of stress. For example, when assessing liquidity, we would generally expect companies to be able to cover the full amount of dividends and share repurchases included in our base-case forecast, while still maintaining exc

Guggenheim CLO 2020-1 Ltd. Notes Assigned Preliminary Ratings

Guggenheim CLO 2020-1 Ltd./Guggenheim CLO 2020-1 LLC is a CLO transaction backed by broadly syndicated speculative-grade senior secured term loans that are governed by collateral quality tests. We assigned our preliminary ratings to the class A, B, C, and D notes. The preliminary ratings reflect our view of the transaction's diversified collateral pool, credit enhancement, pool characteristics, and legal structure, among other factors. NEW YORK (S&P Global Ratings) April 29, 2020--S&P Global Ratings today assigned its preliminary ratings to Guggenheim CLO 2020-1 Ltd./Guggenheim CLO 2020-1 LLC's floating-rate notes (see list). The note issuance is a CLO transaction backed by broadly syndicated speculative-grade (rated 'BB+' and lower) senior secured term loans that are governed by collateral quality tests. The preliminary ratings are based on information as of April 29, 2020. Subsequent information may result in the assignment of final ratings t

Disney ‘A-2’ Short-Term Ratings Affirmed And Removed From CreditWatch; Long-Term Ratings Remain On CreditWatch Negative

S&P Global Ratings is affirming its 'A-2' short-term and commercial paper (CP) ratings on The Walt Disney Co. and removing the ratings from CreditWatch, where it placed them with negative implications on April 16, 2020. We previously lowered the short-term ratings to 'A-2' from 'A-1' on April 23, 2020. Our long-term ratings on the company remain on CreditWatch with negative implications. Any further lowering of the long-term ratings when resolving the existing CreditWatch listing would likely not result in a further lowering of the 'A-2' short-term and CP ratings. NEW YORK (S&P Global Ratings) April 29, 2020—S&P Global Ratings today took the rating actions listed above. We are affirming our 'A-2' short-term and CP ratings on Disney and removing those ratings from CreditWatch. Our long-term ratings on the company remain on CreditWatch with negative implications. If we were to lower our long-term ratings on Disney when resolving th

Radiology Partners Holdings LLC Downgraded To 'B-' On Lower Free Cash Flow And COVID-19-Related Risks; Outlook Stable

California-based Radiology Partners Holdings LLC's operating performance will be further pressured by COVID-19 related volume declines, reducing our confidence that the company will achieve our base case expectations for debt reduction and consistent positive free cash flow in 2020. We believe the company has sufficient liquidity to weather operational challenges created by the COVID-19 pandemic. We are lowering our issuer credit rating to 'B-' from 'B'. At the same time, we are lowering our issue-level ratings on the company's revolver and secured debt to 'B-'from 'B'. The recovery rating is '3' (50%-70%; rounded estimate: 60%). We are also lowering our rating on the company's unsecured notes to 'CCC' from 'CCC+'. The recovery rating is '6' (0%-10%; rounded estimate: 0%). The stable outlook reflects our view that the company will continue to enhance scale through its aggressive growth strategy of debt-fin

Nuveen Premier Municipal Income Fund, Inc. Common Stock Credit Rating

BOSTON (AI Credit Rating Terminal) Wed Apr 29 2020 21:50:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We downgraded Nuveen Premier Municipal Income Fund, Inc. Common Stock bacause the bail-in of that type of liability would not provide any economic benefit to the resolution or would even destroy value. We use econometric methods for period (n+7) simulate with Royer Oscillators Multiple Regression. Reference code is: 2883. Beta DRL value REG 14 Rational Demand Factor LD 3943.9512. We do not exclude cash that the company needs to maintain to run the business and meet potential working capital requirements. Since working capital outflows are included under uses (B) of liquidity, system-related cash needed to run the business should be included in sources, along with items such as customer advances. Credit Rating AI Process rely on primary sources of information: Sec Filings, Financial Statements, Credit Ratings