S&P gives Eli Lilly notes A+

S&P said it assigned its A+ issue-level rating to Eli Lilly & Co.'s proposed senior unsecured notes.

“Our A+ issuer credit rating on Eli Lilly reflects the company's well-established position in the high-margin and patent-protected market for prescription drugs, strong competitive position in the diabetes market (with multiple insulin and other related products), and reasonably good product diversity, albeit with a concentration in diabetes (about 50% of 2019 revenues),” S&P said in a press release.

“We expect the company to primarily use the proceeds to reduce commercial paper outstanding, in a leverage-neutral transaction,” S&P said

The outlook is negative.

Moody's rates Eli Lilly notes A2

Moody's Investors Service said it assigned an A2 rating to the new senior unsecured note offering of Eli Lilly and Co.

There are no changes to Lilly's other ratings including the A2 senior unsecured long-term rating or the stable outlook, Moody’s said.

Proceeds are for general corporate purposes, which may include repaying commercial paper borrowings.

Moody's downgrades EPR

Moody's Investors Service said it downgraded the ratings of EPR Properties, including its senior unsecured and issuer ratings to Baa3 from Baa2. The agency also lowered the preferred share rating to Ba1 from Baa3.

“The ratings downgrade reflects the substantial decline in the REIT's cash flows, as the coronavirus pandemic is impacting its experiential tenants' businesses and ability to pay rent to EPR. The downgrade also reflects risks pertaining to EPR's large concentration in movie theaters (46% of 1Q20 annualized revenues), as theaters have not yet reopened and will ultimately be challenged with drawing customers amidst safety concerns and competition from at-home viewing options such as streaming and premium video-on-demand,” Moody’s said in a press release.

The outlook remains negative.

S&P puts Sunrise Communications on watch

S&P said it placed its BBB- ratings for Sunrise Communications Group AG on CreditWatch with negative implications.

“The CreditWatch reflects that a negative rating action on Sunrise following its acquisition by UPC is highly likely. On Aug. 12, 2020, Liberty Global announced that it intends to acquire Sunrise via a tender offer at an enterprise value of CHF 6.8 billion, which assumes a 32% premium to the 60-day average share price,” S&P said in a press release.

S&P rates Liberty Global BB- and if Sunrise’s notes remain in the capital structure, the agency said it would likely downgrade them by two notches.

S&P alters PotlatchDeltic view to stable

S&P said it revised the outlook for PotlatchDeltic Corp. to stable from negative and affirmed all its ratings on the company, including the BBB- issuer rating.

“We expect that improved wood products volumes and pricing starting in the second quarter of 2020 will persist through the end of the year and enable PotlatchDeltic to deleverage in 2020 and 2021. Anticipated demand declines by lumber mills in the first half of 2020 led to capacity curtailments, though demand has recently picked up, which has significantly increased lumber pricing,” S&P said in a press release.

S&P said it expects the company to maintain leverage of 2x-3x over the next two years, down from 4.2x as of June 30.

S&P assigns Johnson & Johnson notes AAA

S&P said it assigned its AAA rating to Johnson & Johnson's proposed issuance of about $7 billion of senior unsecured notes, in multiple tranches.

“The acquisition and debt issuance occur at a time when adjusted debt leverage is already at a 15-year high. Last-12-months leverage reached about 1.3x in the second quarter of 2020 following significant share repurchases following U.S. tax reform and, more recently, due to Covid-19-related softness in the medical device business on lower elective procedures. That includes our estimate of $4 billion-$5 billion of litigation reserves for opioids and other outstanding litigation in our measure of adjusted debt.

S&P said it expects the company to primarily use the proceeds to fund the recently announced acquisition of Momenta Pharmaceuticals Inc. for about $6.1 billion (net of cash at the target).

DBRS assigns Reliance notes BBB

DBRS said it assigned a rating of BBB (low) with a stable trend to Reliance LP’s $430 million of 2.68% senior secured notes maturing Dec. 1, 2027.

The rating is based upon the rating on already-outstanding series of the above-mentioned debt instrument, DBRS said.

Reliance will use the proceeds to repay in full its senior secured notes due in September, with any excess proceeds to be used for general corporate purposes and/or to repay Reliance Intermediate Holdings LP’s senior secured notes due 2023.

Fitch rates Southern Co. Gas notes BBB+

Fitch Ratings said it assigned a BBB+ rating to Southern Co. Gas Capital Corp.'s $500 million of series 2020A 1.75% senior notes due Jan. 15, 2031.

The notes are guaranteed by Southern Co. Gas, which has a BBB+ issuer default rating with a negative outlook.

The proceeds will be used to repay all or a portion of commercial paper, borrowings under an uncommitted credit facility and for general corporate purposes, including investments in its subsidiaries.

Fitch gives Hanover Insurance notes BBB

Fitch Ratings said it assigned a BBB rating to the Hanover Insurance Group Inc.'s $300 million of new 10-year senior unsecured notes. The new rating is equivalent to Fitch's ratings on Hanover's outstanding senior debt.

Hanover will use the proceeds to redeem the full $175 million of 6.35% of outstanding subordinated debentures due 2053 and for general corporate purposes.

Moody's gives Johnson & Johnson notes Aaa

Moody's Investors Service said it assigned an Aaa rating to the new senior unsecured notes offering of Johnson & Johnson. There are no changes to the company's other ratings including the Aaa senior unsecured long-term rating

Proceeds will be used to fund the acquisition of Momenta Pharmaceuticals, Inc. and for general corporate purposes.

The outlook remains unchanged at negative.

Moody's withdraws Tech Data notes rating

Moody's Investors Service said it withdrew the ratings for certain Tech Data Corp. senior unsecured notes. Moody's assigned ratings on June 15 with the expectation of new senior unsecured notes.

“Instead, the senior unsecured notes of Tech Data (old) were transferred to Tech Data as a result of the acquisition by Apollo Global Management, Inc.,” the agency said in a press release.

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