S&P lowers AIG Seguros

Standard & Poor’s said it lowered the global scale financial strength rating on AIG Seguros Mexico SA de CV to A from A+.

The agency also said it removed this rating from CreditWatch negative, where it was placed in February.

The agency also said it affirmed the company’s national scale mxAAA financial strength rating.

The outlook is stable.

S&P also assigned a BBB stand-alone credit profile rating on the company.

The downgrade follows American Home Assurance’s withdrawal of its unconditional guarantee of all of AIG Seguros’ obligations, the agency said.

American Home Assurance is a subsidiary of AIG Seguros, S&P said.

The ratings on AIG Seguros reflect the company’s fair business risk profile due to its adequate competitive position, which considers the company’s brand recognition, satisfactory gross operating performance and small business scale, the agency said.

The ratings also take into account its solid capitalization ratios, limited exposure to foreign-currency risk and adequate portfolio diversification, S&P said.

Fitch lowers Golden Eagle

Fitch Ratings said it downgraded Golden Eagle Retail Group Ltd.’s long-term issuer default rating and senior unsecured rating to BB+ from BBB-.

The outlook was revised to stable from negative.

The downgrade reflects deterioration of Golden Eagle’s operating environment and the longer investment payback period on stores opened in past few years, which have resulted in weaker credit metrics, Fitch said.

Golden Eagle’s earnings are under pressure because new stores are taking longer to start generating profits because of competition from other department stores and other retail formats like shopping malls, specialty stores and e-commerce retailers, the agency said.

The stable outlook reflects Golden Eagle’s sufficient liquidity with its operating cash flow and its ¥5.4 billion available cash able to meet its committed capital expenditure, the agency said.

Fitch downgrades several Greek banks

Fitch Ratings said it downgraded the long-term issuer default rating of the National Bank of Greece SA, Piraeus Bank, SA, Eurobank Ergasias SA (Eurobank) and Alpha Bank AE’s long-term issuer default ratings to CCC from B- and viability ratings to CCC from B-.

The ratings on the four banks also were removed from Rating Watch negative, Fitch said.

The actions follow the downgrade of Greece’s sovereign rating March 27, the agency said, and reflect Greece’s weaker economic prospects, which put the banks’ asset quality and solvency at further material risk.

The downgrades also consider pressures on funding and liquidity as deposit outflows are expected to continue until a compromise deal between Greece and its creditors is reached, Fitch said.

The ratings also reflect a view that failure risk at these banks is a real possibility given funding, liquidity and solvency pressures in the context of the exceptionally challenging domestic operating environment, with potential further deterioration in loan quality, as well as direct exposure to the weakened Greek sovereign, the agency said.

National Bank of Greece’s long-term issuer default rating was downgraded to CCC from B-, short-term issuer default rating to C from B and viability rating to CCC from B-. Its senior notes were downgraded to CCC with a recovery rating of RR4 from B- with a recovery rating of RR4, short-term senior notes to C from B and state-guaranteed debt to CCC from B. Piraeus Bank’s hybrid capital rating was affirmed at C with recovery rating of RR6.

NBG Finance plc’s long-term senior unsecured debt rating was downgraded to CCC with recovery rating of RR4 from B- with recovery rating of RR4 and its short-term senior unsecured debt rating to C from B.

Piraeus Bank’s long-term issuer default rating was downgraded to CCC from B-, short-term issuer default rating to C from B, viability rating to CCC from B-, long-term senior unsecured debt rating to CCC with recovery rating of RR4 from B- with recovery rating of RR4, short-term senior unsecured debt rating to C from B and commercial-paper rating to C from B.

Piraeus Group Finance plc’s long-term senior unsecured debt rating was downgraded to CCC with recovery rating of RR4 from B- with recovery rating of RR4 and short-term senior unsecured debt rating to C from B.

Alpha Bank’s long-term issuer default rating was downgraded to CCC from B-, short-term issuer default rating to C from B, viability rating to CCC from B-, long-term senior unsecured debt rating to CCC with recovery rating of RR4 from B- with recovery rating of RR4, short-term senior unsecured debt rating to C from B and market-linked senior notes to CCCemr with recovery rating of RR4 from B-emr with recovery rating of RR4. Its hybrid capital was affirmed at C with recovery rating of RR6.

Alpha Credit Group plc’s long-term senior unsecured debt rating was downgraded to CCC with recovery rating of RR4 from B- with recovery rating of RR4, short-term senior unsecured debt rating to C from B and subordinated notes to C with recovery rating of RR6 from CC with recovery rating of RR6.

Eurobank’s long-term issuer default rating was downgraded to CCC from B-, short-term issuer default rating to C from B, viability rating to CCC from B-, senior notes to CCC with recovery rating of RR4 from B- with recovery rating of RR4, short-term senior notes: to C from B, market-linked senior notes to CCCemr with recovery rating of RR4 from B-emr with recovery rating of RR4, commercial-paper rating to C from B, subordinated notes to C with recovery rating of RR6 from CC with recovery rating of RR6, long-term state-guaranteed debt to CCC from B and short-term state-guaranteed debt to C from B. Its hybrid capital was affirmed at C with recovery rating of RR6.

ERB Hellas plc’s long-term senior unsecured debt rating was downgraded to CCC with recovery rating of RR4 from B- with recovery rating of RR4, short-term senior unsecured debt rating to C from B, long-term state-guaranteed debt to CCC from B and short-term state-guaranteed debt to C from B.

ERB Hellas (Cayman Islands) Ltd.’s long-term senior unsecured debt rating was downgraded to CCC with recovery rating of RR4 from B- with recovery rating of RR4, short-term senior unsecured debt rating to C from B, long-term state-guaranteed debt to CCC from B and short-term state-guaranteed debt to C from B.

Fitch downgrades Honghua

Fitch Ratings said it downgraded Honghua Group Ltd.’s long-term issuer default rating and senior unsecured rating to BB- from BB.

The outlook also was revised to negative from stable.

The downgrade reflects deterioration in Honghua’s profitability and cash flow generation in a difficult operating environment in 2014, Fitch said.

The negative outlook reflects an expectation that the operating environment will continue to be difficult in 2015, which may hinder Honghua’s de-leveraging process, the agency said.

The Chinese government’s 2014 anti-graft campaign in the domestic oil and gas sector had a chilling effect on private oilfield services providers, Fitch said.

In addition, the sharp decline in global oil prices in the second half of 2014 prompted producers to reduce their shale and offshore drilling activities, the agency said, and cut capital expenditure.

Fitch downgrades Latam

Fitch Ratings said it downgraded Latam Airlines Group SA’s foreign-currency issuer default rating to BB- from BB.

Fitch also said it downgraded TAM SA’s foreign- and local-currency issuer default ratings to BB- from BB and its national long-term rating to A(bra) from A+(bra).

The outlook is stable.

The downgrades reflect the review of Latam’s operational performance, Fitch said, as well as expectations for the next 24 months ending in December 2016.

The downgrades also incorporate a review of Latam’s credit metrics versus its global peers within the rating category, the agency said.

The ratings consider the company’s diversified business model, strong regional market position, high gross adjusted leverage and adequate liquidity, Fitch said.

The ratings also incorporate the company’s solid business position in the domestic and international Brazilian market, as well as the volatility in the operational results, the agency said.

Also downgraded includes Tam Linhas Aereas SA’s long-term issuer default rating to BB- from BB, local-currency issuer default rating to BB- from BB and national long-term rating to A(bra) from A+(bra).

The rating on Tam Capital Inc.’s $300 million senior unsecured notes due 2017 also was downgraded to BB- from BB, along with the rating on Tam Capital Inc. 2’s $300 million senior unsecured note due to 2020 to BB- from BB.

The rating on Tam Capital Inc. 3’s $500 million senior unsecured note due 2021 also was downgraded to BB- from BB.

S&P lowers Magnesita Refratarios

Standard & Poor’s said it lowered the Brazilian national scale rating on Magnesita Refratarios SA to brA+ from brAA.

The outlook is negative.

The agency also said it revised the company’s outlook to negative from stable.

The agency also said it affirmed the company’s BB corporate credit rating and BB ratings on Magnesita Finance Ltd. and Magnesita Refractories Co.

The Brazilian real’s sharp depreciation in the past six months has weakened the company’s credit metrics because about 45% of its debt is denominated in dollars, the agency said.

The downgrades also reflect the company’s currently weak credit metrics and weaker market conditions, S&P said.

The agency said the company’s revenues are expected to strengthen in 2015 due to its flexibility in increasing sales in global markets.

Fitch lowers OAS

Fitch Ratings said it downgraded the foreign-currency and local-currency issuer default ratings of OAS SA and Construtora OAS SA to D from RD, along with its long-term national scale ratings to D(bra) from RD(bra).

Fitch also said it downgraded OAS Empreendimentos SA’s national scale rating to D(bra) from RD(bra).

The downgrades reflect OAS’s filing for bankruptcy protection, the agency said.

On top of OAS, the request for bankruptcy protection involves Construtora OAS SA, OAS Empreendimentos SA, SPE Gestao e Exploracao de Arenas Multiuso SA, OAS Infraestrutura SA, OAS Imoveis SA, OAS Investments GmbH and OAS Investments Ltd. e OAS Finance Ltd.

On Jan. 2, OAS announced the suspension of interest and amortization payments as the terms proposed by banks to refinance the group’s debt worsened with the allegations of involvement in the Lava-Jato investigation, Fitch said.

OAS has faced difficulties in selling assets due to several injunctions presented by creditors, the agency said.

S&P downgrades Sound Global

Standard & Poor’s said it lowered the long-term corporate credit rating on Sound Global Ltd. to B from BB-, along with the rating on its senior unsecured notes to B- from B+.

S&P also said it lowered the long-term Greater China regional scale ratings on the company to cnBB- from cnBB+ and on the notes to cnB from cnBB.

The ratings also were placed on CreditWatch with negative implications.

The downgrades reflect a view that the company has governance deficiencies in terms of its internal controls, financial reporting reliability and financial transparency, S&P said.

On April 1, Sound Global announced that its auditor had identified potential issues relating to the company’s financial position, which prevented Sound Global from publishing its annual results by March 31, the filing deadline set by the Hong Kong stock exchange, the agency said.

The company will consider engaging independent forensic accountants to conduct an investigation, if necessary, S&P added.

Sound Global also announced the resignation of one of its independent non-executive directors, the agency said.

Sound Global’s liquidity could come under stress because of the audit issues and missed filing deadline, S&P said. There also is an increased likelihood that the company may not fulfill its obligation to complete a scheduled covenant test based on the audited results for the company’s outstanding dollar-denominated senior unsecured notes.

Under the issuance terms, noteholders could demand immediate payment if Sound Global fails to meet its obligation and take remedy action in due course, the agency said.

S&P lowers UkrLandFarming

Standard & Poor’s said it lowered the long-term foreign-currency corporate credit rating on UkrLandFarming plc to CC from CCC-.

The outlook is negative.

The agency also said it lowered the rating on UkrLandFarming’s $500 million unsecured notes to CC from CCC-.

The recovery rating on these notes remains at 4, indicating 30% to 50% expected default recovery.

The downgrade reflects the increased risk that the company could default on its financial debt obligations in the next few months,, S&P said.

Ukrainian companies are experiencing severe constraints in accessing external liquidity sources, the agency said.

Current political and financial tensions do not appear near an end, S&P added, and the evolution of the current situation is unpredictable.

Fitch lifts Arab Tunisian Bank view to stable

Fitch Ratings said it affirmed Arab Tunisian Bank’s long-term foreign- and local-currency issuer default ratings at BB and BB+, respectively.

The outlook on the bank’s long-term foreign-currency was revised to stable from negative.

The outlook on its long-term local-currency rating remains negative.

The actions follow the recent revision of the outlook on Tunisia’s long-term foreign-currency issuer default rating to stable from negative, Fitch said.

The bank’s ratings are driven by the moderate probability of support it could expect to receive, if required, from its 64.2% shareholder, Arab Bank plc, the agency said.

This is because Arab Tunisian Bank is strategically important to Arab Bank as the latter remains committed to the development of retail banking in Tunisia, Fitch said.

Fitch lifts ETAP to stable

Fitch Ratings said it revised Entreprise Tunisienne d’Activites Petrolieres’ (ETAP) outlook to stable from negative and affirmed its national long-term rating at AA-(tun) and national short-term rating at F1+(tun).

ETAP is a wholly-state-owned company with the specific status of a business-oriented public entity, commonly known as an EPNA.

The outlook revision follows the revision of Tunisia’s sovereign outlook to stable from negative, Fitch said.

The agency said it applies a parent and subsidiary rating-linkage methodology, notching ETAP down one notch from its parent, the Tunisian sovereign, due to tight legal, strategic and operational links between ETAP and its sole shareholder.

Moody’s upgrades Protelindo

Moody's Investors Service said it upgraded the corporate family rating for PT Profesional Telekomunikasi Indonesia Tbk. (Protelindo) to Ba1.

The outlook is stable.

"Protelindo's upgrade reflects the continued resilience in Protelindo's financial and credit profile, such that the company has the financial flexibility to make debt funded acquisitions and maintain its adjusted leverage at 3.0x-3.5x and its Ba1 rating," Moody's assistant vice president Nidhi Dhruv said in a news release.

Fitch puts El Wifack on positive watch

Fitch Ratings said it placed El Wifack’s national ratings on Rating Watch positive, following news of its strategic partnership with the Islamic Corp. for the Development of the Private Sector.

Under the terms of the agreement, Islamic Corp. will become the largest shareholder with an expected 30% stake in El Wifack, Fitch said.

The increase in capital is expected to occur in June and July 2015. Islamic Corp. also will provide the leasing company with technical assistance to facilitate its conversion into a universal Islamic bank, the agency said.

The ratings on positive watch include El Wifack Leasing’s national long-term rating of BBB-(tun), national short-term rating of F3(tun) and national senior unsecured debt rating of BBB-(tun).

Fitch said it will resolve the positive watch once Islamic Corp.’s equity stake purchase is completed, which will likely be by the third-quarter of 2015.

S&P: Neonergia to negative

Standard & Poor’s said it revised the outlook on Neonergia SA and its subsidiaries, Companhia de Eletricidade do Estado da Bahia (Coelba), Companhia Energetica de Pernambuco (Celpe) and Companhia Energetica do Rio Grande do Norte (Cosern) to negative from stable.

S&P also said it affirmed the BBB- global scale and brAAA national scale corporate credit ratings on these companies.

The agency also affirmed the brAA+ ratings on Neoenergia’s subsidiaries, Termopernambuco SA and Itapebi Geracao de Energia SA, based on the parent company’s unconditional and irrevocable guarantee of the notes issued by these entities.

The financial risk profile assessment on Neoenergia also was revised to significant from intermediate due to its more aggressive leverage ratios, S&P added.

Moody’s affirms Saudi Arabia

Moody's Investors Service said it affirmed Saudi Arabia's Aa3 long-term issuer rating and maintained a stable outlook on the rating.

This reflects the kingdom's ample financial assets, which will allow it to weather a period of lower oil revenues and maintain a fiscal profile compatible with the current rating.

The long-term and short-term country ceilings for bonds and for bank deposits for Saudi Arabia are unaffected and remain at Aa3/P-1.

Moody’s said Saudi Arabia's Aa3 rating retains a stable outlook because the government's very substantial financial resources and low indebtedness indicate that the kingdom's financial strength will remain solid over the coming years, outweighing the negative impact of the recent fall in oil prices. Saudi Arabia has very substantial financial resources that can support a period of fiscal deficits.

Moody’s gives Turkey’s TSKB program Baa3

Moody's Investors Service said it assigned provisional Baa3 long-term and provisional Prime-3 short-term senior unsecured debt ratings to the $750 million global medium-term note program of Turkiye Sinai Kalkinma Bankasi AS (Baa3 negative, baseline credit assessment ba1).

The ratings for the debt obligations of the program are in line with TSKB's Baa3/Prime-3 long and short-term issuer ratings.

Moody's assigned the rating in the context of TSKB issuing, up to a maximum aggregate of $750 million, long and short-term debt notes through its note program.

The notes will be unconditional, unsubordinated and unsecured obligations, and will rank pari passu with all of TSKB's other senior unsecured obligations.

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