Fitch gives Hanover positive outlook

Fitch Ratings said it changed Hanover Insurance Group Inc.’s outlook to positive from stable and affirmed its issuer default rating and senior notes at BBB-.

The agency said the revision in outlook reflects the sharp profitability expansion in the last two years due to improved exposures and mix in the United States as well as the consistently solid and growing contribution from Chaucer Holdings plc.

Hanover's ratings reflect adequate capitalization of U.S. operating subsidiaries and Fitch's belief that its internal capital formation is likely to continue to marginally improve, the agency said.

Fitch changes Nissan view to positive

Fitch Ratings said it revised Nissan Motor Co., Ltd.’s outlook to positive from stable and affirmed its long-term foreign- and local-currency issuer default ratings and senior debt rating at BBB.

The outlook revision to positive reflects Nissan's improved profitability outlook and strong cash flow generation over the medium term, which will support its robust financial profile, the agency said. Fitch believes that Nissan could be upgraded to BBB+ within the next 18 months if its industrial operating margin trends towards 5% combined with a further improvement in leverage.

Fitch changes ConAgra view to negative

Fitch Ratings said it revised the outlook for ConAgra Foods, Inc. and subsidiary Ralcorp Holdings, Inc. to negative from stable and affirmed their long-term issuer default ratings at BBB-.

The agency said it revised the outlook given the slower-than-expected pace of operating earnings improvement and prolonged volume declines. As a result, Fitch expects that gross leverage is likely to be in the mid 3 times range for fiscal 2015 and the pace of deleveraging thereafter is uncertain.

ConAgra's ample free cash flow generation and strong liquidity support the ratings, the agency said.

Fitch rates AquaSure notes A-

Fitch Ratings said it assigned an expected A- rating to the U.S. private placement notes to be issued by AquaSure Finance Pty. Ltd., the financing vehicle for AquaSure Pty. Ltd. The notes are expected to have a term of 12 years and will include U.S. dollar-denominated series 2015A fixed-rate notes and Australian dollar-denominated series 2015B floating-rate notes. The outlook is stable.

The issuer intends to raise the equivalent of $250 million and use the proceeds to repay part of the A$1.25 billion bank debt that matures in October 2016.

The agency said the rating takes into account the stable cash flow provided by AquaSure's concession, which runs through to 2039, to design, build, operate and maintain a 150 gigalitre-per-year desalination plant and associated infrastructure near Melbourne under a public-private partnership.

Fitch rates Liberty notes BBB

Fitch Ratings said it assigned a BBB rating to Liberty Property LP's $400 million 3.75% senior notes due 2025 and affirmed its issuer default rating, revolving credit facility and senior notes at BBB, its preferred operating units at BB+ and Liberty Property Trust’s issuer default rating at BBB. The outlook is stable.

Proceeds will be used for working capital and general corporate purposes, including repayment of borrowings under the $800 million credit facility.

The agency said the ratings for Liberty reflect its leverage, fixed-charge coverage and unencumbered asset coverage of unsecured debt, all of which are appropriate for a BBB rated REIT with the company's asset profile.

In Fitch’s view, moderate liquidity pressure, partly due to Liberty's growing but manageable development pipeline, and the persistent shortfall in the company's dividend coverage from adjusted funds from operations balance the ratings.

S&P rates Mizuho dollar notes A+

Standard & Poor’s said it has assigned its A+ debt ratings to the dollar-denominated senior notes issued by Mizuho Bank Ltd. (A+/negative/A-1).

The ratings on the bonds are the same as its long-term counterparty rating on Mizuho Bank, given the current level of its issuer credit rating on the bank, and the issuance terms and conditions of the bonds.

The agency noted that it is unlikely that the bank would face a significant liquidity squeeze, given that it holds a limited amount of outstanding senior notes relative to its liquid asset holdings, such as cash and government bonds.

If Mizuho Bank issues a large amount of senior notes with a cross-acceleration clause, the agency said it may consider lowering the rating on the bank and the issue rating on the rated senior notes.

The A+ ratings apply to the following: $500 million of 1.8% notes due March 26, 2018, $1 bllion of 2.4% notes due March 26, 2020, $500 million of 3.20% notes due March 26, 2025 and $500 million of floating-rate notes due March 26, 2018.

Fitch rates National Australia Bank notes A+

Fitch Ratings said it assigned an expected rating of A+ to National Australia Bank Ltd.'s A$1.1 billion Basel-III compliant tier 2 instrument due 2025 to be offered to domestic and international institutional investors.

The agency said the rating reflects the instrument’s below-average recovery prospects compared to the bank’s senior unsecured instruments.

S&P rates Swiss Re notes A

Standard & Poor’s said it assigned its A long-term issue rating to the proposed junior subordinated perpetual fixed-to-floating callable notes to be issued by Swiss Reinsurance Co. Ltd. (AA-/stable/A-1+).

The rating on the notes is subject to confirmation.

The rating is two notches below its counterparty credit rating on Swiss Re, reflecting its standard notching for deferrable subordinated debt issues, the agency said.

S&P noted that it understands that the notes include a step-up of 100 basis points to the spread if a call is not exercised at the first call date.

S&P gives RenaissanceRe notes A

Standard & Poor's said that it assigned its A senior debt rating to RenaissanceRe Holdings Ltd.'s $300 million of 3.7% senior unsecured notes due 2025.

The agency said it expects RenaissanceRe to use the proceeds of this issue to finance its previously announced acquisition of Platinum Underwriters Holdings Ltd. for $1.9 billion in cash and stock, which was completed on March 2.

The notes will be issued by RenaissanceRe Finance Inc. (not rated) and guaranteed by RenaissanceRe Holdings.

The agency noted that it believes RenaissanceRe's financial flexibility is strong and it expects its financial leverage to remain less than 20% and fixed-charge coverage of the combined entity to be around 7x-8x during the next two years.

Moody's rates RenaissanceRe notes A3

Moody's Investors Service said it assigned an A3 rating with a negative outlook to $300 million of 10-year 3.7% senior notes issued by RenaissanceRe Finance Inc. and guaranteed by RenaissanceRe Holdings Ltd.

The note proceeds are being used to fund the acquisition of Platinum Underwriters Holdings Ltd., which closed on March 2.

The agency said the rating reflects the group's market leadership in property catastrophe reinsurance, good capital adequacy, profitable track record, superior customer service, strong risk management culture and a long history of using joint ventures and other forms of soft capital to meet client needs.

However, these strengths are tempered by the group's high business concentration in the very competitive property catastrophe reinsurance market (about half of total premiums, pro forma for Platinum acquisition) and its overweight exposures in the United States (over 60% of pro forma premiums) – notably Florida, Moody’s said.

The rationale for the negative outlook is that Moody’s remains circumspect about the benefits of the Platinum acquisition to creditors.

Moody's affirms Telus

Moody's Investors Service said it affirmed Telus Corp.’s Baa1 senior ratings and stable outlook.

The action was prompted by the company's 2015 guidance disclosure and commitments arising from the recent wireless spectrum auction, in which Telus was the winning bidder for licenses aggregating to C$1.5 billion.

The agency presumes that the spectrum purchases will be debt-financed and that the company will revise its leverage policy and operate with Moody's adjusted-leverage in the 2.75 times to 3.0 times range for the next two years. Leverage was 2.5 times at Dec. 31, or 2.9 times pro forma for expected wireless spectrum purchases.

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