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Showing posts from February 24, 2021

Conifer Holdings Inc Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Feb 25 2021 10:49:03 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We rerated Conifer Holdings Inc because of no indications exist that private equity, management, or shareholders may reduce or prevent the maintenance of capital. (We use econometric methods for period (n+7) simulate with Momentum Stepwise Regression). 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 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. Oscillators are used for generating credit risk signals by using the semantic and financial signals. T

Ecomott Inc Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Feb 25 2021 10:19:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We rerated Ecomott Inc 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+1) simulate with Triple Exponential Moving Average (TRIX) Ridge Regression). Given that we exclude proposed "best efforts" or potential financings as a source of liquidity, we also exclude from uses of liquidity acquisitions and other discretionary spending that are contingent on the successful issuance of new financing to support the proposed transaction. Credit Rating AI Process r

TOC Co Ltd Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Feb 25 2021 09:49:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We rerated TOC Co Ltd because market risk charges capture the risk of loss on trading portfolio at a one-year horizon and a 99.9% confidence level. (We use econometric methods for period (n+1) simulate with Commodity Channel Index Simple Regression). While the existence of a commercial paper (CP) program can provide companies with alternative sources of short-term funding, such a program would not be considered a committed source of liquidity. Additionally, we do not require the presence of a committed facility to back up the full size of the CP program. For liquidity to be at least adequate, an issuer would need sources of liquidity (for example, committed facility and/or cash balances) to cover at least 100% of expected intra-year debt maturities, including CP, over the next 12 months. Credit Rating AI Pro

King Merger Sub II LLC Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Feb 25 2021 09:19:03 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We rerated King Merger Sub II LLC because negative outlook reflects low visibility over the company's deleveraging in the next 12 months. (We use econometric methods for period (n+30) simulate with Williams %R Logistic Regression). 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, Semantic Signals. Take a look at Machine Learning section for Financial Deep Reinforcement Learning. Oscillators are used for generating credit r

PEOPLES BANK OF MACON Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Feb 25 2021 08:49:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We rerated PEOPLES BANK OF MACON because of the level of the two metrics relative to the entity's credit and market risks. (We use econometric methods for period (n+1) simulate with Clapp Oscillators Logistic Regression). 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 requirement under uses of liquidity. This is because the criteria evaluate a company's liquidity position during times of stress, when potential downgrades are more likely. Credit Rating AI Proces

CHESTER COUNTY BANK Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Feb 25 2021 08:19:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We rerated CHESTER COUNTY BANK because If a breakdown of revenues by business line is not available, we apply a 188% risk weight to the highest annual revenue of the past three years. (We use econometric methods for period (n+1) simulate with Royer Oscillators Lasso Regression). In these cases, the level of capital expenditures will be lower than estimates in our base-case forecast to determine an issuer's financial risk profile, particularly for companies that are pursuing discrete growth projects that have not been committed or can be easily curtailed in case of a need to preserve cash. 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. O

Guardian Life Insurance Co of America Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Feb 25 2021 07:49:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We rerated Guardian Life Insurance Co of America because of the risk or unstable nature of the firm's mix of business, some aspect of the firm's market position, customer confidence sensitivity, or expected revenue stability are materially weaker than average, or represent substantial risk beyond risks captured in the anchor. (We use econometric methods for period (n+30) simulate with Chaikin Money Flow Sign Test). 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 liquidity assessment, generally, lower-rated entities might meet the quantitative requirements for strong or exceptional liquidity but fail to meet corresponding qualitati

Texas Citizens Bank, N.A Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Feb 25 2021 07:19:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We rerated Texas Citizens Bank, N.A because risk weight to investments in mutual funds and other collective investment undertakings if the underlying exposures are not disclosed. (We use econometric methods for period (n+30) simulate with Price Channels Stepwise Regression). To assess forecasted working capital outflows for companies with material intra-year working capital requirements (for example, companies in seasonal businesses), we use forecasted peak working capital outflows, per paragraph 32 of the liquidity criteria. For seasonal businesses, in many cases the annual projection might indicate a working capital inflow or neutral working capital, even though there could be material intra-quarter or inter-quarter outflows throughout the year. Credit Rating AI Process rely on primary sources of informati

Foxby Corp Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Feb 25 2021 06:49:03 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We rerated Foxby Corp because of derivatives receivables represent more than 0.5% of total assets for entities reporting under U.S. GAAP. (We use econometric methods for period (n+7) simulate with Williams %R Wilcoxon Sign-Rank Test). When evaluating uses of liquidity, we include all debt maturities over the liquidity horizon that are either recourse to the company, or nonrecourse that we believe the company will support even in times of stress. In cases where the debt includes a put option held by debtholders, we will consider the date of the put option the effective debt maturity--i.e., we will assume the debt will need to be repaid/refinanced on the day the put can be first exercised. Credit Rating AI Process rely on primary sources of information: Sec Filings, Financial Statements, Credit Ratings, Semant

VNUE Inc Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Feb 25 2021 06:19:04 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We rerated VNUE Inc because that the performance of that type of liability is critical for the resolved entity to continue operating. (We use econometric methods for period (n+7) simulate with Exponential Moving Average (EMA) Stepwise Regression). 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 Reinforcement Learning. Oscillators are used for generating credit risk signals by using t

Tokyo Electron Device Ltd Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Feb 25 2021 05:49:03 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We rerated Tokyo Electron Device Ltd because 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+1) simulate with Modified (Smoothed) Moving Average Ridge Regression). 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 Ratings, Semantic Signals. Take a look at Machine Learning section for Financial

Harvard University Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Feb 25 2021 05:19:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We rerated Harvard University because free cash flow negative and leverage high. (We use econometric methods for period (n+30) simulate with Envelope (ENV) Polynomial Regression). 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 record among investors. These costs and information asymmetry issues sometimes make it impractical for smaller, speculative-grade issuers to raise small amounts of debt in public markets. Credit R

Bay-Vanguard, MHC Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Feb 25 2021 04:49:03 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We rerated Bay-Vanguard, MHC because of deduct investments in insurance subsidiaries (as per paragraphs 41-43) and significant minority investments in financial institutions. (We use econometric methods for period (n+7) simulate with Bollinger Bands Width Independent T-Test). 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 record among investors. These costs and information asymmetry issues sometimes make it impractical

COMMUNITY STATE BANK Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Feb 25 2021 04:19:03 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We rerated COMMUNITY STATE BANK because the company faces substantial refinancing risk given significant maturities. (We use econometric methods for period (n+30) simulate with Triple Exponential Moving Average (TRIX) Logistic Regression). When calculating sources of liquidity, we only include the undrawn, available portion of committed bank lines maturing beyond the specified time horizon for each liquidity descriptor. For example, when assessing liquidity as adequate, we only include a committed revolving credit facility as a source if it matured beyond the next 12 months. Similarly, given that our liquidity assessment looks out over two years when assessing liquidity as strong or exceptional, we only include a facility maturing beyond 24 months as a source of liquidity. Credit Rating AI Process rely on pr

CIGNA Health and Life Insurance Company Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Feb 25 2021 03:49:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We rerated CIGNA Health and Life Insurance Company because of deduct interest-only strips. (We use econometric methods for period (n+1) simulate with Psychological Line (PSY) Polynomial Regression). We do not include potential future debt issuances as a source of liquidity because of the uncertainty of a company's ability to access debt markets in times of financial stress, even for investment-grade issuers. For instance, in the case of a proposed financing, with the intended use of proceeds to repay existing debt, we will assess a company's liquidity excluding the proposed financing until it's obtained or fully underwritten. 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

Boer Power Holdings Ltd Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Feb 25 2021 03:19:03 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We rerated Boer Power Holdings Ltd because of at least one of the following applies: shareholders are supportive of strong capital, with lower expectations for dividends and share buybacks; the firm has concrete commitments from outside parties to provide it with material amounts of loss-absorbing capital that practically can be exercised while still a going concern; or the firm is at least adequately capitalized and a committed strong financial partner or backer bolsters financial flexibility. (We use econometric methods for period (n+30) simulate with FS Paired T-Test). In these cases, the level of capital expenditures will be lower than estimates in our base-case forecast to determine an issuer's financial risk profile, particularly for companies that are pursuing discrete growth projects that have no

MBT Financial Corp. Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Feb 25 2021 02:49:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We rerated MBT Financial Corp. because of business mix, revenue stability, market position, and customer base (confidence sensitivity of clients and other outside commercial parties). In situations where profitability has a material negative impact on market position, this may limit the assessment. (We use econometric methods for period (n+30) simulate with Commodity Channel Index Ridge Regression). To assess forecasted working capital outflows for companies with material intra-year working capital requirements (for example, companies in seasonal businesses), we use forecasted peak working capital outflows, per paragraph 32 of the liquidity criteria. For seasonal businesses, in many cases the annual projection might indicate a working capital inflow or neutral working capital, even though there could be mate

1ST SOURCE BANK Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Feb 25 2021 02:19:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We rerated 1ST SOURCE BANK 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+1) simulate with Stochastic Oscillator Sign Test). 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 Process rely

Gilead Sciences, Inc. Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Feb 25 2021 01:49:03 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We rerated Gilead Sciences, Inc. because business model transition. (We use econometric methods for period (n+1) simulate with FS Wilcoxon Sign-Rank Test). To assess an issuer's standing in the credit markets, we may look at factors such as equity, debt, and credit default swaps (CDS) trading levels, where available, relative to peers and market averages. For example, lower-than-average debt trading levels or widening rating-adjusted spreads relative to market averages may indicate decreasing market confidence about a company's prospects and ability to meet its debt maturities. As a result, the company could have increased difficulty accessing the capital markets. Credit Rating AI Process rely on primary sources of information: Sec Filings, Financial Statements, Credit Ratings, Semantic Signals. Take

Hallador Energy Co Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Feb 25 2021 01:19:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We rerated Hallador Energy Co because free cash flow negative and leverage high. (We use econometric methods for period (n+7) simulate with Voltage Controlled Oscillator Pearson Correlation). When evaluating uses of liquidity, we include all debt maturities over the liquidity horizon that are either recourse to the company, or nonrecourse that we believe the company will support even in times of stress. In cases where the debt includes a put option held by debtholders, we will consider the date of the put option the effective debt maturity--i.e., we will assume the debt will need to be repaid/refinanced on the day the put can be first exercised. Credit Rating AI Process rely on primary sources of information: Sec Filings, Financial Statements, Credit Ratings, Semantic Signals. Take a look at Machine Learning

Sachem Capital Corp Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Feb 25 2021 00:49:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We rerated Sachem Capital Corp because liquidity position will remain exceptionally weak over the next 12 months. (We use econometric methods for period (n+1) simulate with Royer Oscillators Chi-Square). 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 sources of information: Sec Filings, Financial Statements, Credit Ratings, Semantic Signals. Take a look at Machine Learning section for Financial Deep Reinforcem

Full Circle Capital Corporation Credit Rating

BOSTON (AI Credit Rating Terminal) Thu Feb 25 2021 00:19:03 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We rerated Full Circle Capital Corporation because of the risk or unstable nature of the firm's mix of business, some aspect of the firm's market position, customer confidence sensitivity, or expected revenue stability are materially weaker than average, or represent substantial risk beyond risks captured in the anchor. (We use econometric methods for period (n+7) simulate with Electron Coupled Oscillators Wilcoxon Sign-Rank Test). For companies in more volatile sectors, we assess the resiliency of liquidity through a cycle. If we do not believe the resulting descriptor reflects sustainable liquidity characteristics, we could adjust our liquidity assessment downward. For example, we could lower our liquidity assessment on a volatile company to strong from exceptional if we believe key quantitative me

Noble International, Ltd. Credit Rating

BOSTON (AI Credit Rating Terminal) Wed Feb 24 2021 23:49:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We rerated Noble International, Ltd. 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+30) simulate with Gunn Oscillator Multiple Regression). Given that it can be difficult to identify outstanding CP at any point in time, when considering coverage, we may include our expectations for peak outstanding CP during the year as opposed to CP balances as of the last filing date, especially if we believe reported balances are not reflective of typical borrowing patterns. Credit Rating AI Process rely o

Guardian Industries Resources, LLC Credit Rating

BOSTON (AI Credit Rating Terminal) Wed Feb 24 2021 23:19:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We rerated Guardian Industries Resources, LLC because of 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 Chaikin Money Flow Multiple Regression). In these cases, the level of capital expenditures will be lower than estimates in our base-case forecast to determine an issuer's financial risk profile, particularly for companies that are pursuing discrete growth projects that have not been committed or can be easily curtailed in case of a need to preserve cash. Credit Rating AI Process rely on primary sources of information: Sec Filings, Financial S

GULF INVESTMENT FUND PLC Credit Rating

BOSTON (AI Credit Rating Terminal) Wed Feb 24 2021 22:49:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We rerated GULF INVESTMENT FUND PLC because of business mix, revenue stability, market position, and customer base (confidence sensitivity of clients and other outside commercial parties). In situations where profitability has a material negative impact on market position, this may limit the assessment. (We use econometric methods for period (n+1) simulate with Cross-Coupled Oscillators Stepwise Regression). For example, if a company incurred a large working capital inflow in the fourth quarter, which more than offset working capital outflows during the first three quarters, we would use the peak working capital outflows within our A/B and A-B calculation. However, we avoid double-counting when the working capital outflow is already captured through our assumption of peak CP amount. Credit Rating AI Process

LIBERTY NATIONAL BANK Credit Rating

BOSTON (AI Credit Rating Terminal) Wed Feb 24 2021 22:19:03 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We rerated LIBERTY NATIONAL BANK because of at least one of the following applies: shareholders are supportive of strong capital, with lower expectations for dividends and share buybacks; the firm has concrete commitments from outside parties to provide it with material amounts of loss-absorbing capital that practically can be exercised while still a going concern; or the firm is at least adequately capitalized and a committed strong financial partner or backer bolsters financial flexibility. (We use econometric methods for period (n+7) simulate with Electron Coupled Oscillators ElasticNet Regression). 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,

UBS Select Prime Institutional Fund Credit Rating

BOSTON (AI Credit Rating Terminal) Wed Feb 24 2021 21:49:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We rerated UBS Select Prime Institutional Fund because of derivatives receivables represent more than 0.5% of total assets for entities reporting under U.S. GAAP. (We use econometric methods for period (n+1) simulate with Bollinger Bands Spearman Correlation). 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 period. 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 Learni

COMMERCIAL NATIONAL BANK OF BRADY TX Credit Rating

BOSTON (AI Credit Rating Terminal) Wed Feb 24 2021 21:19:02 GMT+0000 (Coordinated Universal Time) AI Credit Ratings today took the rating actions below: Rating Action Overview We rerated COMMERCIAL NATIONAL BANK OF BRADY TX because of strategic positioning, operational performance, organizational effectiveness, risk and financial management, and governance. (We use econometric methods for period (n+30) simulate with Price Channels Lasso Regression). For companies in more volatile sectors, we assess the resiliency of liquidity through a cycle. If we do not believe the resulting descriptor reflects sustainable liquidity characteristics, we could adjust our liquidity assessment downward. For example, we could lower our liquidity assessment on a volatile company to strong from exceptional if we believe key quantitative measures typical of exceptional liquidity are not sustainable over the forecast period. This could especially be true if we believe there is a higher prospect of ratios