S&P cuts Adani Abbot Point

S&P said it downgraded Adani Abbot Point Terminal Pty Ltd. to BB+ from BBB- and placed the ratings on CreditWatch with negative implications.

The CreditWatch with negative implications reflects heightened liquidity risks pending repayment of the May 2020 maturity. Although Adani issued a prepayment notice for April 17, to holders of the A$100 million notes due May 2020, this money is not yet in a secure account and the nature of the funding is unknown, the agency said.

“We may remove the rating from CreditWatch upon repayment of the bonds on April 17 as per the terms of the prepayment notice. Any change in the rating will also take into account the project's steps to address the November 2020 maturity,” S&P said in a press release.

Fitch lowers Expedia

Fitch Ratings said it downgraded the issuer default rating of Expedia Group, Inc. to BBB- from BBB. Fitch also downgraded Expedia's senior unsecured debt rating to BBB- from BBB. The outlook is negative.

“Expedia's investment-grade rating continues to reflect the company's healthy overall credit profile and solid liquidity. The downgrade and the negative outlook reflect the severe disruption to global travel caused by the coronavirus outbreak as well as the unknown depth and duration of the outbreak's impact. Fitch now expects Expedia's 2020 leverage to be well above 2x, the threshold for a downgrade to BBB-,” said Fitch in a press release.

S&P lowers Lazard

S&P said it downgraded Lazard Group LLC and its unsecured debt ratings to BBB+ from A-.

Lazard finished 2019 with leverage slightly above 1.5x, S&P’s downside trigger for the company, and it predicts lower cash flow generation will lead the company to end 2020 with leverage above that threshold.

The outlook is stable.

Moody's cuts Occidental Petroleum

Moody's Investors Service said it downgraded Occidental Petroleum Corp.'s senior unsecured rating to Ba1 from Baa3. Moody's also assigned Occidental a corporate family rating of Ba1, a probability of default rating of Ba1-PD and a speculative grade liquidity rating of SGL-3. Ratings were placed on review for downgrade.

"Occidental Petroleum's August 2019 acquisition of Anadarko Petroleum Corporation (Anadarko) continues to burden the company's balance sheet with over $35 billion of debt and $10 billion of preferred stock, significantly compromising its financial flexibility to confront the collapse in oil prices," said Andrew Brooks, a Moody's vice president, in a press release.

"While OXY has made progress capturing acquisition synergies, and is itself a low-cost operator with attractive Permian Basin acreage, projected asset sales required for debt reduction have slowed and face considerable headwinds in a challenged oil and natural gas price environment, leaving OXY with a significantly weakened credit profile whose prospects for near-term improvement are uncertain," Brooks said.

S&P cuts Sonoco Products

S&P said it downgraded Sonoco Products Co.’s rating by a notch to BBB.

“Sonoco's credit measures have underperformed versus expectations. When we revised Sonoco's outlook to negative in the summer of 2017, we indicated the potential for a downgrade if the company could not strengthen its funds from operations (FFO)-to-debt ratio to above 35%. Since then, Sonoco has ended each fiscal year at about 30%. This performance is not appropriate for the BBB+ rating given Sonoco's weakness in other credit measures as well as its relative lack of operational scale,” said S&P in a press release.

The outlook is negative.

S&P trims Southwest Airlines

S&P said it lowered all its Southwest Airlines Co. ratings, including the issuer rating to BBB from BBB+, and placed them on CreditWatch with negative implications.

“We expect Southwest's credit metrics to weaken sharply in 2020 from previous expectations because of the impact from the coronavirus outbreak. While the company is reducing capacity and some associated costs and benefits from the steep decline in oil prices, we expect these to be more than offset by much lower traffic. We expect passenger traffic to begin to recover later this year, continuing into 2021,” said S&P in a press release.

S&P expects to resolve the CreditWatch placement after it learns more about the effect of the coronavirus on the company’s financial position.

S&P rates UPS notes A

S&P Global Ratings said it assigned its A issue-level rating to United Parcel Service Inc.'s proposed senior unsecured notes. S&P expects the company will use the proceeds to refinance its upcoming maturities and repay a portion of its outstanding commercial paper balances.

“Our A long-term issuer credit rating and negative outlook on UPS reflect its increased pension liabilities, which have weakened its credit measures. If we anticipate that the company's funds from operations (FFO)-to-debt ratio will fall below the mid-20% area on a sustained basis, we could lower our rating,” S&P said in a press release.

Fitch changes Air Canada view to negative

Fitch Ratings said it affirmed the issuer default rating of Air Canada at BB and revised the outlook to negative from stable.

The revision is based on the sharp drop in demand due to the Coronavirus. North American airlines are reporting steep and broad-based declines in passenger numbers since the virus began to appear widely outside of China. Fitch believes Air Canada will return to credit metrics that are supportive of the BB rating by the end of 2021.

S&P puts Ausol on negative watch

S&P said it placed its BBB rating on Autopista del Sol Concesionaria Espanola on CreditWatch with negative implications.

“We understand Ausol has been tax consolidated with its holding companies Infratoll and Meridiam Investments 5 SAS. Therefore, as per Spanish law, Ausol could be deemed jointly and severally liable for any unpaid tax liabilities owed by these companies. We, therefore, consider Ausol exposed to the creditworthiness of these two entities,” said S&P in a press release.

S&P said it aims to resolve the placement within the three to six months, once it has assessed the holding companies’ creditworthiness.

Fitch revises British Airways view to negative

Fitch Ratings said it revised British Airways plc's outlook to negative from stable and affirmed the airline's long-term issuer default rating at BBB-.

“The negative outlook reflects our revised forecast for BA assuming a major halt to operations due to the Covid-19 pandemic with credit metrics estimated to be weak for its BBB- rating until 2022. We estimate liquidity is sufficient to bridge the period of lost revenues, but a recovery delay beyond 2H20 or failure by BA to effectively implement mitigation measures would lead to a downgrade,” said Fitch in a press release.

Fitch changes Delta view to negative

Fitch Ratings said it affirmed the issuer default rating for Delta Air Lines at BBB-, and revised its outlook to negative from stable.

The negative outlook is based on the sharp drop in demand occurring in the market due to the widespread effect on demand from the coronavirus. Fitch said its current forecast for Delta anticipates the company will be able to return to credit metrics that support the BBB- rating in 2021.

Moody's changes Informa view to negative

Moody's Investors Service said it changed the outlook on Informa plc from stable to negative. Concurrently, Moody's affirmed the Baa3 issuer and senior unsecured ratings of Informa.

The change in outlook to negative reflects the pressure developing on the company's revenues and EBITDA in 2020 from show delays and cancellations caused by the coronavirus outbreak across geographies. Informa has so far traded £250 million of its GBP1.9 billion annual Events revenues.

The company recently announced the cancellation, or biennial rephasing to 2021, of 13 shows in 2020 worth £25 million in revenues and the postponement of 115 shows worth £400 million in revenues into the second half of 2020.

S&P shifts ITV view to negative

S&P said it revised the outlook on ITV plc to negative from stable and affirmed its long-term ratings on the group and its debt at BBB-.

The negative outlook indicates S&P could lower the rating over the next 24 months if ITV is unable to maintain S&P Global Ratings-adjusted leverage below 2.5x on a sustainable basis. The uncertainty around the length and the severity of the coronavirus pandemic and its effect on global economic growth and ITV's revenue and profitability also put pressure on the rating, the agency said.

“As the coronavirus pandemic escalates and growth heads sharply lower against a backdrop of volatile markets and growing credit stress, we now forecast a global recession this year and believe advertisers will likely reduce their marketing spend. In 2019, total advertising revenue was 53% of ITV's external revenue,” S&P said in a press release.

Fitch revises Southwest view to negative

Fitch Ratings said it affirmed Southwest Airlines at A- and revised the outlook to negative from stable.

“The negative outlook reflects the sharp drop in market demand caused by efforts to contain the coronavirus. U.S. airlines are reporting steep and broad-based declines in passenger numbers since the virus began to appear widely outside of China. Southwest is the highest-rated airline in Fitch's portfolio and is well-positioned to withstand a sharp downturn. Fitch anticipates that the company could return to credit metrics that are supportive of the A- rating by 2021 or 2022, after temporarily straying outside of our guidelines in 2020,” said Fitch in a press release.

Moody's changes Spark Infrastructure view to negative

Moody's Investors Service said it revised the outlook on Spark Infrastructure Trust to negative from stable. At the same time, Moody's affirmed Spark Infrastructure's Baa1 long-term issuer rating.

"The change in outlook to negative reflects our expectation that Spark's consolidated financial leverage – as measured by funds from operations (FFO)/debt – will weaken to below the existing Baa1 rating tolerance level of 11.5% over the next 12 to 18 months," said Nicholas Chapman, a Moody's vice president and senior analyst, in a press release.

Fitch shifts Dai-ichi Life view to stable

Fitch Ratings said it revised the outlook on the Dai-ichi Life Insurance Co., Ltd. to stable from positive, and affirmed its long-term issuer default rating at A. The agency also affirmed the company's dollar-denominated subordinated notes at A-.

The change in the outlook is based on the uncertainty created by the global coronavirus pandemic, which has led to high levels of volatility in the capital markets. This, in turn, has resulted in a sharp drop in interest rates, as well as significant variability in stock, bond and derivative prices, Fitch said.

Fitch revises Ethias's outlook to stable

Fitch Ratings said it revised Ethias SA's outlook to stable from positive. Fitch also affirmed Ethias' issuer default rating at BBB+.

The outlook change is based on the significant uncertainty created by the global Covid-19 pandemic, which has resulted in high levels of volatility in capital markets. This, in turn, has resulted in a sharp drop in interest rates, as well as significant variability in stock, bond and derivative prices as well as a heightened risk of credit events.

The combination will likely create some pressure on earnings and variability in capital levels of European life and composite insurers, the severity and duration of which is impossible to predict. Fitch believes these conditions no longer support a positive outlook, the agency said.

Fitch revises Fukoku Life view to stable

Fitch Ratings said it revised the outlook on Fukoku Mutual Life Insurance Co. to stable from positive, and affirmed and its long-term issuer default rating at A-. The agency also affirmed the company's dollar-denominated subordinated notes at BBB+.

The revision is due to the significant uncertainty created by the global coronavirus pandemic, which has resulted in greater volatility in capital markets. This, in turn, has resulted in a sharp drop in interest rates, as well as significant variability in stock, bond and derivative prices, Fitch said.

Fitch revises Groupama view to stable

Fitch Ratings said it revised the outlook on Groupama Assurances Mutuelles and core subsidiaries to stable from positive while affirming their long-term issuer default ratings at A-.

The revision of Groupama's outlook to stable is based on the significant uncertainty created by the global coronavirus pandemic, which has resulted in high levels of volatility in capital markets. This, in turn, has resulted in a drop in interest rates, as well as variability in stock, bond and derivative prices.

The combination will likely pressure earnings and variability in capital levels of European life and composite insurers, the severity and duration of which is impossible, particularly for insurers with material exposure to life insurance risks such as Groupama. Fitch believes these conditions, along with its negative outlook on the French life insurance sector, no longer support a positive outlook.

Fitch shifts NN view to stable

Fitch Ratings said it revised the outlook on NN Group NV's to stable from positive and affirmed the ratings.

The outlook revision is based on the significant uncertainty created by the global coronavirus pandemic. Volatility in interest rates, stock, bond and derivative prices have materially increased since the agency revised NN's outlook to positive from stable on March 9.

Fitch revises Phoenix view to stable

Fitch Ratings said it revised the outlooks of Phoenix Group Holdings plc and its main operating life companies to stable from positive.

The outlook change is based on the significant uncertainty created by the global coronavirus pandemic, which has resulted in high levels of volatility in capital markets. This, in turn, has resulted in a sharp drop in interest rates, as well as significant variability in stock, bond and derivative prices.

The combination will likely pressure earnings and variability in capital levels for the U.K. life insurance sector, the severity and duration of which is impossible at this time to predict. Fitch believes these conditions no longer support a positive outlook.

Fitch shifts Protective Life view to stable

Fitch Ratings said it revised Protective Life Corp.'s and its primary life insurance subsidiaries' outlook to stable from positive. Also, Fitch affirmed Protective's and its life insurance operating subsidiaries' ratings.

The outlook revision is based on the uncertainty created by the global coronavirus pandemic, which has resulted in high levels of volatility in capital markets. This, in turn, has resulted in a sharp drop in interest rates, as well as significant variability in stock, bond and derivative prices.

The combination will likely pressure earnings and variability in capital levels, the severity and duration of which isn’t possible to predict at this time. Fitch said it believes these conditions no longer support a positive outlook.

Fitch revises ReAssure's view to stable

Fitch Ratings said it revised the outlook of ReAssure Group plc, ReAssure Ltd. and Old Mutual Wealth Life Assurance Ltd. to stable from positive. At the same time, Fitch affirmed ReAssure Group's long-term issuer default rating at A.

ReAssure's ratings and outlooks are aligned with those of Phoenix Group Holdings plc pending the proposed acquisition of ReAssure by Phoenix. This reflects Fitch's assessment of the strategic importance of ReAssure as a key asset to Phoenix.

Moody's assigns A2 to Disney notes

Moody's Investors Service said it assigned an A2 rating to the Walt Disney Co.'s proposed notes offering. The senior unsecured notes will be pari passu with the company's senior unsecured indebtedness and will be guaranteed by TWDC Enterprises 18 Corp., a subsidiary of Disney.

Proceeds will be used for general corporate purposes, which Moody's believes will include strengthening liquidity and could include paying down outstanding commercial paper balances or fund upcoming debt maturities.

The rating outlook for Disney is stable.

Moody's assigns MetLife notes A3

Moody's Investors Service said it assigned an A3 rating to an issuance of $1 billion senior unsecured notes to be issued by MetLife, Inc.

The proceeds are expected to be used for general corporate purposes. The outlook for MetLife is stable.

S&P rates MetLife notes A-

S&P Global Ratings said it assigned its A- senior unsecured debt rating to MetLife Inc.'s proposed senior notes issuance.

“We expect Met to use the offering proceeds for general corporate purposes. This additional debt will result in a modest increase in Met's financial leverage (including unfunded pension obligations, present value of operating leases, and hybrids), but we expect it to remain less than 30% on a reported equity basis (about 30%-35% excluding accumulated other comprehensive income), which is in line with our expectations. We expect EBITDA fixed-charge coverage to remain at 5x-7x in 2020,” said S&P in a press release.

Moody's assigns Northrop Grumman notes Baa2

Moody's Investors Service said it assigned a Baa2 senior unsecured rating to Northrop Grumman Corp.'s new senior unsecured notes.

The company will use the proceeds for general corporate purposes, which may include debt repayment and for working capital.

The new notes will not be guaranteed by any subsidiary and do not affect the existing Baa2 and Baa1 senior unsecured debt ratings assigned to Northrop Grumman, the Baa1 senior unsecured debt ratings assigned to its subsidiaries Northrop Grumman Systems Corp. and Northrop Grumman Space & Mission Systems Corp. The outlook is stable.

Fitch rates Northrop Grumman notes BBB

Fitch Ratings said it assigned a long-term rating of BBB to Northrop Grumman Corp.'s new senior unsecured notes. The company is issuing $2 billion of notes split between 10- and 30-year maturities to bolster liquidity ahead of the upcoming 2020 and 2021 maturities and amid a period of market uncertainty.

Fitch views the issuance as neutral to the company's BBB long-term issuer default rating, issue ratings and the company's stable outlook.

S&P gives Disney notes A

S&P said it assigned its A issue-level rating to the Walt Disney Co.'s proposed senior unsecured notes. The company plans to issue several series of fixed-rate notes and expects to use the proceeds to repay its upcoming maturities, pay down its outstanding commercial paper and for general corporate purposes.

S&P gives Northrop Grumman notes BBB

S&P said it assigned a BBB rating to Northrop Grumman Corp.'s proposed senior notes to be issued in three tranches.

S&P also affirmed its BBB ratings on the company and its unsecured debt.

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