Fitch lifts Westar, Kansas Gas to BBB+

Fitch Ratings said it upgraded the long-term issuer default ratings for Westar Energy, Inc. and its utility operating subsidiary, Kansas Gas and Electric Co. (KG&E), to BBB+.

The outlooks were revised to stable from positive.

Fitch said the upgrade is supported by improvement in credit metrics over the rating horizon, including debt to EBITDAR declining to 3.5 times by 2017 in Fitch's base case.

The upgrade also considers satisfactory resolution of Westar’s latest general rate case, lower capex spend and equity issuance earlier in 2015. The Kansas Corp. Commission adopted a settlement in September 2015 authorizing a net rate base increase of $78 million, which represents about a mid-9% allowed ROE in Fitch's estimate.

S&P upgrades Spain to BBB+

Standard & Poor's said it raised its long-term sovereign credit rating on the Kingdom of Spain to BBB+ from BBB.

The outlook is stable.

The A-2 short-term sovereign credit rating was affirmed.

S&P said the upgrade reflects its view of Spain's strong, balanced economic performance over the past four years, which is gradually benefiting public finances. The agency now expects real GDP growth to average 2.7% over 2015-2017 versus its previous forecast of 2.2% after the review in April this year.

S&P rates Novomatic CCR, notes, loans BBB

Standard & Poor's said it assigned its BBB/A-2 long- and short-term corporate credit ratings to Novomatic AG.

The outlook is stable.

At the same time, the agency assigned a BBB long-term issue rating to the company's €600 million senior unsecured notes, maturing in 2017, 2019, and 2021.

It also assigned a BBB rating to the €440 million backup credit facilities, maturing in 2018 and 2020.

S&P said the ratings reflect its assessment of Novomatic’s "satisfactory" business risk and "minimal" financial risk profiles. They also incorporate the agency’s expectation of a substantial rise in leverage resulting from future major acquisitions over the next 24 months.

S&P has not factored in such acquisitions, such as the targeted acquisition of a stake in Casinos Austria, into its base-case assumptions and leverage ratios at this stage.

S&P rates Southern junior notes BBB

Standard & Poor's said it assigned its BBB long-term issue rating to Southern Co.'s series 2015A junior subordinated notes due Oct. 15, 2075.

The agency classifies these hybrid securities being issued by the Atlanta-based utility holding company as having intermediate (50%) equity content.

The issue rating is notched down two notches from the A- issuer credit rating to reflect the instrument's subordination to more senior obligations and deferability of its interest payment.

The outlook is negative.

Fitch applies BBB+ to Southern junior notes

Fitch Ratings said it assigned a BBB+ rating, on Rating Watch Negative, to Southern Co.’s series 2015A junior subordinated notes due Oct. 15, 2075.

Net proceeds will be used to pay a portion of outstanding short-term debt, which stood at $524 million as of Sept. 30, and for general corporate purposes.

The debentures are junior and subordinated in right of payment and upon liquidation to all of Southern's senior debt. Southern may defer interest payments on the debentures on one or more occasions for up to 10 consecutive years per deferral period.

S&P changes Mitsui outlook to negative

Standard & Poor's said it revised its outlook on the long-term corporate credit rating on Mitsui & Co. Ltd. to negative from stable.

The agency also revised the outlooks on the long-term corporate credit ratings on its overseas subsidiaries, including Mitsui & Co. (Australia) Ltd., to negative from stable.

S&P said the revisions reflect its view that there is an increasing likelihood for the company's net profit and cash flow in fiscal 2015 (ending March 31, 2016) to fall below assumptions.

The agency believes the prices of natural resources, such as crude oil, copper, and iron ore, are likely to remain sluggish in the medium-term. It holds the view that the company's capital adequacy – S&P’s key financial indicator for general trading and investment companies – is likely to weaken beyond the level assumed in the current ratings over the next six to 12 months.

At the same time, S&P affirmed Mitsui’s long-term rating at A+ and short-term rating at A-1. It also affirmed the long-term ratings on Mitsui's overseas subsidiaries, including Mitsui & Co. (Australia) Ltd., at A+ and the short-term ratings at A-1.

Moody’s lifts view Newcrest to stable

Moody’s Investors Service said it affirmed Newcrest Mining Ltd.’s Baa3 issuer rating and changed the outlook on all ratings to stable from negative.

Moody’s also said it affirmed the Baa3 senior unsecured ratings of Newcrest’s financing subsidiary, Newcrest Finance Pty Ltd., and changed the outlook to stable from negative.

The outlook change reflects the company’s improved cost profile and credit metrics, Moody’s said.

Improvements in Newcrest’s unit costs strengthened margins and the company’s ability to maintain appropriate credit metrics in the weaker gold price environment, the agency said.

Newcrest’s financial leverage, as measured by adjusted debt-to-EBITDA, improved to about 2.5x in the financial year ended June 30, increasing the cushion to withstand gold price declines, Moody’s said.

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