Fitch upgrades JetBlue

Fitch Ratings said it upgraded JetBlue Airways Corp.’s issuer default rating to B+ from B.

Fitch also said it upgraded JetBlue’s unsecured rating to B+ with recovery rating of RR4 from B- with recovery rating of RR5, along with its senior secured credit facility to BB+ with recovery rating of RR1 from BB with recovery rating of RR1.

The outlook is stable.

The upgrade is supported by JetBlue’s consistent profitability, solid financial flexibility and the improving health of its balance sheet, Fitch said.

The upgrade also considers recent news of JetBlue’s revenue enhancing initiatives, which Fitch said it believes should drive higher margins over the intermediate term.

The outlook is stable.

The company is expected to produce meaningful free cash flow over the next several years, the agency said.

The ratings also benefit from the significant cash savings expected to come from the recent drop in fuel prices, Fitch said.

Ratings concerns include the cyclicality and high degree of operating leverage that is typical for the airline industry, the agency said.

S&P upgrades Nielsen

Standard & Poor’s said it raised the corporate credit rating on Nielsen NV to BB+ from BB.

The agency also said it raised the rating on the company’s senior secured debt to BBB from BBB-. The 1 recovery rating is unchanged, indicating 90% to 100% expected default recovery.

S&P also said it raised the rating on Nielsen’s senior unsecured debt to BB+ from BB. The 3 recovery rating is unchanged, indicating 50% to 70% expected default recovery.

The outlook is stable.

The upgrades reflect Nielsen’s lower leverage and an expectation that the company will remain committed to maintaining adjusted leverage to less than 4x on a sustained basis, S&P said.

Moody’s raises Peugeot to Ba3

Moody's Investors Service said it upgraded Peugeot SA’s (PSA) corporate family rating to Ba3 from B1 and probability of default rating to Ba3-PD from B1-PD.

Concurrently, the agency upgraded all of Peugeot’s and its rated subsidiary GIE PSA Trésorerie's ratings to Ba3 from B1 and affirmed the NP ratings.

The outlooks are stable.

"The upgrade of the ratings acknowledges the results of the decisive actions taken by PSA in the last year in order to reduce its structural costs and to improve its competitiveness which, together with favorable volume trends in the European passenger cars industry, helped the company's automotive operations to be break-even in 2014,” Yasmina Serghini-Douvin, Moody's vice president, senior credit officer and lead analyst for Peugeot, said in a news release.

"There is potential for a further profit increase in the next 12 to 18 months as the company reaps the annualized benefits of the efficiency measures implemented throughout 2014, despite an expected slowdown in unit sales growth of passenger cars in Europe this year."

S&P lowers Quicksilver

Standard & Poor’s said it lowered the corporate credit on Quicksilver Resources Inc. to D from CCC-, along with the ratings on the company’s second-lien debt to D, unsecured notes to C and subordinated notes to C.

The D ratings reflect the missed interest payment on the company’s 9 1/8% senior notes due 2019.

The agency also said it revised the recovery rating on the second-lien debt to 3, indicating 50% to 70% expected default recovery, from 4.

The ratings reflect the presence of cash on the company’s balance sheet, which improves the potential value available to the second-lien lenders, S&P said.

The downgrade considers the company’s decision not to pay about $13.6 million in interest due Feb. 17 on its 9 1/8% senior notes due 2019, the agency said.

S&P rates Ball loan BBB-, view to negative

Standard & Poor’s said it revised the outlook on Ball Corp. to negative from stable.

The agency also said it affirmed the company’s BB+ corporate credit rating.

S&P also said it assigned a BBB- rating and 2 recovery rating to the company’s proposed $3 billion revolving credit facility due 2018.

The 2 recovery rating indicates 70% to 90% expected default recovery.

All other existing issue-level ratings and recovery ratings are unchanged.

The company will use the new facility to retire its existing senior secured credit facility and refinance senior unsecured notes due in 2020 and 2021, S&P said.

The facility also is available for general corporate purposes and to support the company’s proposed acquisition of Rexam, which it does not expect to close until first half of 2016, the agency said.

Recovery prospects on the new facility are lower than on the existing credit facility due to the larger facility size and the absence of direct borrowings by foreign subsidiaries that benefit from additional guarantees and collateral, S&P said.

If the acquisition is completed, the combined company should benefit from increased product- and geographic-diversity and various synergies, the agency said.

S&P puts Intelsat on watch

Standard & Poor’s said it placed Intelsat SA’s B+ corporate credit rating on CreditWatch with negative implications.

The CreditWatch placement reflects a revision in the base-case forecast for Intelsat due to its lower-than-anticipated guidance for 2015, S&P said, and an expectation that weakness could persist into 2016 due to pressure in network services, continued uncertainty around government demand and potential delays in revenue contribution from the launch of its first high-throughput satellite.

The company had originally planned to launch the satellite in the second half of 2015, but now expects likely delays until the first quarter of 2016, the agency said.

Revenue is now expected to decline about 5%, S&P said, and adjusted leverage is expected to increase to about 8.1x from 7.7x in 2014.

With the satellite most likely not becoming a revenue contributor until the second half of 2016, revenue could decline at a low single-digit percent rate, the agency said, and adjusted leverage could remain at more than 8x.

Moody’s revises Tyco International Finance to negative

Moody's Investors Service said it revised the outlook for Tyco International Finance SA to negative from stable and affirmed the senior unsecured rating of A3 and short-term rating of Prime-2.

Tyco International Finance, wholly owned by Tyco International plc (TIP), is expected to issue debt in the near future to cover expected disbursements under legacy asbestos liabilities and announced acquisitions.

TIP guarantees Tyco International Finance’s obligations.

Moody’s said the need for external funding follows Tyco's stock repurchases by drawing down its balance sheet cash. Purchasing stock with cash continued while the company had potentially sizeable, and still unresolved, tax contingencies as well as an acquisition strategy that collectively may require further funding at some point.

Moody’s revises Teva to stable

Moody's Investors Service said it affirmed the A3 senior unsecured rating of Teva Pharmaceutical Industries Ltd. and its subsidiaries.

The outlook was changed to stable from negative.

Moody’s said the outlook change reflects the reduced likelihood of a significant decline in earnings over the next several years as Teva has protected a substantial portion of its Copaxone franchise from generic competition and will be able to offset a portion of declines in its branded business with improved profitability in its generic business.

Further, Teva's strong cash generation has allowed it to not only absorb significant litigation outflows without incurring incremental debt, but also to repay debt over the past 12 months.

"Teva still faces a number of challenges that will result in weak growth over the next several years" Moody's senior credit officer Jessica Gladstone said in a news release. "However, Teva's improved financial flexibility better positions the company to absorb unexpected operating setbacks and to engage in strategic business development activities that will enhance the company's diversity and product pipeline."

S&P rates Axiall loan BBB-

Standard & Poor’s said it assigned a BBB- rating and 1 recovery rating to Axiall Corp.’s proposed $250 million term loan due 2022.

The borrower is Axiall Holdco, a subsidiary of Axiall.

The 1 recovery rating indicates 90% to 100% expected default recovery.

The proceeds will be used to refinance its existing term loan due in 2017.

All existing ratings on Axiall, including its BB corporate credit rating, are unchanged.

The outlook is stable.

The ratings reflect Axiall’s fair business profile and significant financial risk profile, S&P said.

Moody’s assigns Axiall loan Ba1

Moody's Investors Service said it assigned a Ba1 rating to Axiall Corp.’s proposed $250 million senior secured bank credit facility, or term loan B, due 2022.

Proceeds will be used to refinance the existing senior secured bank credit facility currently due in 2017. The existing term loan was issued by Eagle Spinco Inc., a wholly owned subsidiary of Axiall. Proceeds will also be used to pay transaction fees and expenses, and for general corporate purposes.

Axiall Holdco, Inc., also a wholly owned subsidiary of Axiall, will be the issuer of the new senior secured bank credit facility.

The outlook continues to be stable.

"Despite our stable outlook, Axiall is currently weakly positioned in the Ba-rating category. The company's profitability suffered in 2014 due to weak caustic soda prices, and elevated ethylene and natural gas prices; additionally, Axiall's chloro-vinyls business suffered significantly in 2014 due to a December 2013 plant fire," Anthony Hill, Moody's vice president, senior credit officer and lead analyst for Axiall, said in a news release.

Fitch rates Ball revolver BBB-

Fitch Ratings said it affirmed the BB+ issuer default rating and all of the outstanding long-term debt of Ball Corp.

Fitch also said it withdrew the ratings on the existing senior secured revolving credit facility.

The agency also said it assigned a BBB- with recovery rating of RR1 to the company’s $3 billion secured revolving credit facility due February 2018.

The ratings affirmed also include the senior unsecured debt rating at BB+ with recovery rating of RR4 and BBB- rating with recovery rating of RR1 on Ball’s senior secured term loan C facility.

The outlook is stable.

Fitch said it believes the proposed $8.4 billion acquisition of Rexam plc will allow Ball to materially improve its business risk profile, profitability and financial flexibility owing to the combined capabilities, production efficiencies and scale of these No. 1 and No. 2 global beverage-can manufacturers.

Thus, the combination should improve Ball’s competitive position to better optimize beverage-can price to customers relative to other alternative packaging substrates, the agency said.

The transaction also provides access to additional geographies and new customers that will increase Ball’s exposure to growing beverage segments, Fitch said, along with the ability to better leverage specialty package technology and efficiencies.

Moody’s rates Ball revolver Ba1, under review

Moody's Investors Service said it assigned a Ba1 rating to Ball Corp.’s new $3 billion revolver and placed the rating under review for downgrade.

The agency also placed the Ba1 corporate family rating, Ba1-PD probability of default rating and all other instrument ratings under review for downgrade.

The review follows Ball's announcement that it has offered to acquire Rexam plc in a cash and stock transaction. The new $3 billion revolver will replace Ball's existing $1 billion revolver, which expires June 2018 and has substantially the same terms and conditions.

On Feb. 19, Ball announced the terms of its offer to acquire all the outstanding shares of Rexam in a cash and stock transaction. The proposal from Ball values Rexam at £6.10 total value per share based on a consideration of about two-thirds in cash and one-third in new Ball shares (roughly $6.6 billion in total equity value as of Feb. 17).

This transaction is subject to the approval of regulators and shareholders from each company and is expected to close in the first half of 2016.

S&P rates Dean Foods notes B+

Standard & Poor’s said it assigned a B+ rating and recovery rating of 5 to Dean Foods Co.’s proposed $700 million Rule 144A senior unsecured notes issue.

The recovery rating of 5 indicates 10% to 30% expected default recovery.

The proceeds of the bond issue will primarily redeem the company’s outstanding 2016 notes, including any prepayment premiums, S&P said.

While Dean Foods is the leading fluid dairy company in the United States, it faces challenging dairy-processing conditions, excess production capacity in many regions, consumer-shift away from higher-margin branded milk and recently volatile commodity-input costs, the agency said.

Still, Dean Foods generates good levels of free cash flow, which should meaningfully improve in fiscal 2015 as milk costs drop, permitting the company to reduce its debt-to-EBITDA ratio to less than 4x, S&P said.

Fitch rates Sprint notes B+

Fitch Ratings said it assigned a B+ rating with a recovery rating of RR4 to Sprint Corp.’s proposed $1 billion senior unsecured notes due 2025.

The company has an issuer default rating of B+ and B+ senior unsecured notes rating with a recovery rating of RR4.

The senior notes will be fully and unconditionally guaranteed on a senior unsecured basis by Sprint’s wholly owned subsidiary, Sprint Communications Inc.

Sprint Communications has an issuer default rating of B+, along with BB rating on its unsecured credit facility with a recovery rating of RR2, BB rating on its junior guaranteed unsecured notes with a recovery rating of RR2 and B+ rating on its senior unsecured notes with a recovery rating of RR4.

Sprint Capital Corp. has a B+ rating on its senior unsecured notes with recovery rating of R4.

Clearwire Communications LLC has an issuer default rating of B+, senior unsecured notes rating of BB+ with recovery rating of RR1 and first priority senior secured notes rating of BB+ with recovery rating of RR1.

The proceeds from the offering will be used for general corporate purposes, including working capital requirements, retirement or service requirements of outstanding debt and network expansion and modernization, Fitch said.

The outlook is stable.

Fitch said it believes Sprint’s standalone financial profile has deteriorated to the low single B rating.

Sprint’s financial profile also will remain weak for an extended period due to the time required to address the numerous execution- and operational-challenges, which has caused the company to seek additional liquidity to fund operating deficits, the agency said.

Sprint also must combat an intense competitive environment, S&P added.

S&P rates Sprint notes B+

Standard & Poor’s said it assigned a B+ rating and 3 recovery rating to Sprint Corp.’s proposed $1 billion of senior notes due 2025.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The proceeds will be used to fund working capital outflows, debt repayment and the upgrade and expansion of its network, S&P said.

While the new debt offering will bolster Sprint’s liquidity position, the agency said it still expects the company will require at least $3 billion of new capital in 2016 to fund free operating cash-flow deficits and upcoming maturities.

S&P also said it believes that Sprint will be challenged to grow its post-paid customer base due to poor brand recognition and aggressive competition from the other wireless carriers.

Moody’s gives iHeart notes Caa1

Moody's Investors Service said it assigned a Caa1 rating to iHeartCommunications, Inc.'s proposed $550 million priority guarantee notes (PGN) maturing in 2023.

iHeart's corporate family rating is unchanged at Caa2.

The outlook remains stable.

The agency rates the proposed PGN, existing PGNs (due in 2019, 2021 and 2022) and the bank credit facility the same to reflect the senior secured position in the capital structure. There are differences in the security package including a collateral sharing agreement that the PGN, which matures in 2019 benefits from that the PGNs maturing in 2021, 2022, and 2023 do not.

Moody’s said the difference in the security package leads to different point estimates in its LGD methodology between the PGN classes. None of the PGNs will have financial covenants while the credit facilities have financial covenants that cause the point estimates for the credit facilities to be slightly better than all the PGNs.

Moody’s drops Sports Authority, loan to Caa1

Moody's Investors Service said it downgraded Sports Authority Inc.'s corporate family rating to Caa1 from B3 and probability of default rating to Caa1-PD from B3-PD.

The agency also downgraded the company's $300 million senior secured term loan to Caa1 from B3.

The outlook is negative.

Moody’s said the downgrade of the corporate family rating to Caa1 reflects Sports Authority's weak liquidity stemming from the need for the company to address near-term debt maturities.

The Caa1 rating on the senior secured term loan reflects its junior position to the $650 million ABL, which has a first lien on the company's more liquid assets. The rating is also supported by the cushion provided by more junior claims in the capital structure, including $343 million of subordinated notes.

S&P: Waste Management notes A-

Standard & Poor’s said it assigned an A- rating to Waste Management Inc.’s proposed $1.8 billion in senior unsecured notes.

The notes will consist of $600 million senior unsecured notes due 2025, $750 million unsecured notes due 2045 and $450 million of senior unsecured notes due 2035.

All other ratings on Waste Management are unchanged, including the A- long-term corporate credit rating.

The outlook remains stable.

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