S&P lowers Brazil companies to negative view

Standard & Poor’s said it took various rating actions on Brazilian corporations and infrastructure entities.

The agency said it affirmed the ratings and revised the outlook to negative from stable on these companies: AmBev – Companhia de Bebidas das Americas (AmBev); Atlantia Bertin Concessoes SA and its subsidiaries, Rodovia das Colinas SA and Triangulo do Sol Auto-Estradas SA; Arteris SA and its subsidiary, Autopista Planalto Sul SA; Braskem SA; CCR SA and its subsidiaries, Autoban – Concessionaria do Sistema Anhanguera Bandeirantes SA, Concessionaria da Rodovia Presidente Dutra SA and Rodonorte Concessionaria de Rodovias Integradas SA; CESP – Companhia Energetica de Sao Paulo; Companhia de Gas de Sao Paulo – Comgas; Companhia Energetica do Ceara – Coelce; Duke Energy International Geracao Paranapanema SA; Ecorodovias Concessoes e Servicos SA and Concessionaria Ecovias dos Imigrantes SA; Elektro Eletricidade e Servicos SA; Eletrobras – Centrais Eletricas Brasileiras SA; Globo Comunicacao e Participacoes SA; Itaipu Binacional; Multiplan Empreendimentos Imobiliarios SA; Net Servicos de Comunicacao SA; Samarco Mineracao SA; Tractebel Energia SA; Transmissora Alianca de Energia Eletrica SA; Ultrapar Participacoes SA; and Votorantim Participacoes SA and its subsidiaries, Votorantim Industrial SA and Votorantim Cimentos SA.

The outlook revision reflects a view that these entities are currently rated at the maximum number of notches above the sovereign foreign-currency rating due to their intrinsic credit factors, sensitivity to country risk and liquidity cushion under the sovereign stress tests, S&P said.

A potential sovereign downgrade would cause the same rating action on these entities, the agency said.

S&P lowers Oceanwide regional ratings, view negative

Standard & Poor’s said it revised the outlook on Oceanwide Holdings Co. Ltd. to negative from stable.

The agency also said it affirmed the company’s B long-term corporate credit rating and on the outstanding senior unsecured notes that the company guarantees.

In line with the outlook revision, the agency said it lowered the long-term Greater China regional scale ratings on Oceanwide and on the notes to cnB+ from cnBB-.

The notes were issued by Oceanwide Real Estate International Holding Co. Ltd.

The outlook revision reflects a view Oceanwide’s leverage may not be able to meaningfully improve over the next 12 months, such that the company’s EBITDA interest coverage remains below the downgrade trigger of 1x, the agency said.

The company’s aggressive growth appetite and acquisitions in the past two years led total borrowings to increase to RMB 42 billion from RMB 26 billion, S&P said, while revenues only grew 2% over the same period.

Oceanwide’s sales execution and project deliveries will need to significantly improve to offset the increased leverage, the agency said.

S&P lifts Sava Re

Standard & Poor’s said it raised the long-term insurer financial strength and counterparty credit ratings on Pozavarovalnica Sava dd, the holding company and core operating entity of the Sava Re group, to A- from BBB+.

The outlook is stable.

The acquisition of mid-market Slovenian insurer Zavarovalnica Maribor, mostly financed with a share rights issue in 2013, has improved Sava Re’s capital adequacy and underwriting performance, S&P said.

Prudent margins on Sava Re’s property- and casualty-loss reserves, as well as a conservative dividend payout policy and share buyback program, also support the upgrade, the agency said.

This strengthening in capital adequacy is sustainable, as management continues to focus on profitable underwriting and operating efficiency, S&P said.

The company also has a large amount of highly liquid assets, the agency said, and is benefiting from the improving credit quality and risks associated with the wider Slovenian economy.

S&P: Brazil financial companies view to negative

Standard & Poor’s said it revised the global scale outlook on 11 Brazilian financial services companies to negative from stable following the same rating action on the Federative Republic of Brazil.

The agency also said it affirmed the long-term and short-term ratings on the entities and revised the national scale outlooks on 14 entities to negative from stable.

The negative outlooks were assigned to Banco Bradesco SA; Itau Unibanco Holding SA; Itau Unibanco SA; Banco Citibank SA; Banco do Brasil SA; Banco do Estado do Rio Grande do Sul SA; Banco Santander (Brasil) SA; Banco do Nordeste do Brasil SA; BM&FBovespa SA -Bolsa de Valores, Mercadorias e Futuros; Banco Nacional de Desenvolvimento Economico e Social; and Caixa Economica Federal.

The agency also said it revised the national scale outlook on Banco Volkswagen SA; Banco Bradesco SA; Bradesco Capitalizacao SA; Itau Unibanco Holding SA; Itau Unibanco SA; Banco BNP Paribas Brasil SA; Banco Citibank SA; Banco de Tokyo-Mitsubishi UFJ Brasil SA; Ativos SA Securitizadora de Creditos Financeiros; Banco do Estado do Rio Grande do Sul SA; Banco Morgan Stanley SA; Banco Santander (Brasil) SA; Banco Toyota do Brasil SA; and Banco do Nordeste do Brasil SA.

S&P said it believes the sovereign’s downside risks have increased. Despite the broad-based policy changes now underway, the global scale outlook revision on Brazil reflects higher execution risks stemming from political and economic fronts, the agency said.

S&P: Local Brazil governments views to negative

Standard & Poor’s said it revised the outlook to negative on the global long-term credit ratings on the states of Sao Paulo, Minas Gerais, Santa Catarina, State of Rio de Janeiro and City of Rio de Janeiro.

The agency also said it affirmed the BBB- long-term rating on the states of Sao Paulo, Minas Gerais and Santa Catarina, along with the BB+ long-term rating on the state of Rio de Janeiro and the BBB long- and A-2 short-term ratings on the city of Rio de Janeiro.

The agency also said it revised the outlook to negative from stable on the brAAA national scale ratings on Sao Paulo, Minas Gerais, Santa Catarina and the brAA+ rating on the state of Rio de Janeiro. These ratings also were affirmed, S&P said.

The agency also said it affirmed the brAAA national scale ratings on the city of Rio de Janeiro with a stable outlook.

The outlook revisions on these local- and regional-governments reflect a similar action on Brazil, S&P said, and their close links to the sovereign.

The deeper and longer economic contraction in Brazil’s real GDP is expected to pose additional fiscal and economic challenges for these governments, the agency said.

Moody’s gives Ba3 IR to Access Bank

Moody's Investors Service said it assigned Access Bank plc Ba3/Not Prime local and foreign currency issuer ratings; Ba3/Not Prime local currency deposit ratings, a B1/Not Prime foreign currency deposit rating and a b2 baseline credit assessment.

The outlook is stable.

The agency also assigned a Counterparty Risk Assessment of Ba3(cr)/Not Prime(cr).

Moody’s said Access Bank's b2 standalone profile reflects: (a) Solid asset quality metrics, underpinned by tangible improvements in loan underwriting standards and risk management in recent years; (b) robust capital and liquidity buffers, supported by sustainable internal capital generation; and (c) a stable liability structure predominantly funded with deposits.

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