Fitch trims Tarjeta Naranja

Fitch Ratings said it downgraded Tarjeta Naranja, SA’s foreign- and local-currency long-term issuer default ratings to CCC- from CCC and its senior unsecured debt to CCC-/RR4 from CCC/RR4 and placed the ratings on rating watch negative.

“The downgrade reflects the increased risks the company faces to service its internationally issued debt following the extension of the capital controls announced last week by the Central Bank of Argentina (BCRA). On Feb. 25, 2021, the BCRA extended the restriction of only selling Argentine issuers’ foreign currency for up to 40% of any upcoming maturing principal until Dec. 31, 2021. Previously, the expiration was on March 31, 2021,” Fitch said in a press release.

The RWN indicates near-term dollar funding risks, potentially undermining Tarjeta’s ability to service its debt under the debt facilities’ terms. Fitch said it plans to resolve the RWN in the coming weeks once it has more clarity about how Tarjeta will obtain the dollars needed to make the principal payment.

S&P ups Atic

S&P said it upgraded Grupo Embotellador Atic, SA’s issuer rating to B+ from B and withdrew the ratings on its $357 million of senior secured notes due 2022 after it repaid them using a mix of bank loans and balance sheet cash. The agency withdrew the notes’ rating.

“In our view, this pro-active refinancing improves the company’s credit quality because it diminishes its refinancing risk by extending its debt maturity profile, with comfortable debt amortizations under the new debt structure. Moreover, the new bank loans have attractive funding costs and will reduce Atic’s exposure to the dollar because the loans are in domestic currencies or are pegged to the dollar in the various countries where the company operates,” S&P said in a press release.

The outlook is stable.

Moody’s changes Cencosud view to stable

Moody’s Investors Service said it affirmed Cencosud SA’s Baa3 issuer rating and senior unsecured rating and changed the outlook to stable from negative.

“The change in the outlook reflects the improvement in Cencosud’s credit metrics over the past few quarters. Cencosud’s operating performance has been above expectations during 2020 despite the disruption caused by the coronavirus pandemic, demonstrating the resilience of its core supermarket business focused in consumer non-discretionary food grocery offering,” said Sandra Beltran, a Moody’s vice president and senior analyst, in a press release.

“The stable outlook incorporates our expectation that Cencosud will continue to improve its operating performance in its non-core businesses, especially shopping centers and department stores, while the effect of the pandemic is phased out,” Beltran added.

Fitch alters Kansas City Southern view to stable

Fitch Ratings said it revised Kansas City Southern’s outlook to stable from negative and affirmed its BBB issuer rating. Also, Fitch affirmed KCS’ senior unsecured debt at BBB.

“The outlook revision to stable reflects reduced uncertainty around the economic environment as the company continues its recovery from the pandemic,” Fitch said in a press release.

S&P assigns BAIC notes BBB

S&P said it assigned its BBB long-term issue rating to the proposed U.S. dollar-denominated senior unsecured notes that BAIC Motor Corp. Ltd. will guarantee. BAIC Finance Investment Co. Ltd., a wholly owned special-purpose vehicle established by BAIC, will issue the notes.

“We equalize the issue rating with the issuer credit rating on BAIC because of credit substitution under the guarantee and lack of subordination. We believe BAIC will maintain its net cash position over the next 12-24 months. The company’s low debt leverage will limit the possibility of noteholders being significantly disadvantaged relative to other creditors,” S&P said in a press release.

BAIC intends to use the proceeds to refinance offshore debts and replenish working capital.

Fitch rates BAIC Motor notes BBB+

Fitch Ratings said it assigned BAIC Motor Corp. Ltd.’s proposed U.S.-dollar senior unsecured notes a rating of BBB+.

The notes will be issued by BAIC Motor’s subsidiary BAIC Finance Investment Co., Ltd., and will be guaranteed by the parent. “The proposed notes are rated at the same level as BAIC Motor’s senior unsecured rating, as they will constitute its direct and senior unsecured obligations,” Fitch said in a press release.

The company intends to use the proceeds for refinancing debt and replenishing working capital.

The outlook is stable.

Moody’s assigns CICT notes A3

Moody’s Investors Service said it assigned an A3 senior unsecured rating to CMT MTN Pte. Ltd.’s S$460 million of notes due March 8, 2028, with a 2.1% coupon issued under its multicurrency medium-term note program, which is also rated (P)A3. CMT MTN is a wholly-owned subsidiary of CapitaLand Integrated Commercial Trust, also rated A3. The notes are guaranteed by HSBC Institutional Trust Services (Singapore) Ltd. in its capacity as CICT’s trustee.

“CICT’s A3 issuer rating reflects its (1) large scale and market position as the second largest real estate investment trust (REIT) in APAC, (2) diversified and balanced portfolio covering integrated developments, retail and office assets, and (3) strong and stable income from its assets, which have a diversified tenant base and consistently high occupancy rates,” Moody’s said in a press release.

CICT will use the proceeds to refinance its borrowings and that of its subsidiaries, as well as for general corporate and working capital purposes.

The outlook is negative.

Moody’s rates Cliffton notes Ba3

Moody’s Investors Service said it assigned a Ba3 rating to the proposed 4.6-year dollar-denominated senior secured notes to be issued by Cliffton Ltd. Cliffton is a newly formed special purpose vehicle created to help Delhi International Airport Ltd. with funding.

“The Ba3 rating assigned to the proposed notes reflects DIAL’s underlying credit quality, given Cliffton’s reliance on cash flow from the NCD repayments to meet the debt-servicing requirements of its USD notes, and the limits on Cliffton’s ability to undertake other activities beyond the proposed transaction,” said Spencer Ng, a Moody’s vice president and senior analyst, in a press release.

Cliffton will use the proceeds to buy Indian rupee-denominated senior secured non-convertible debentures to be sold by DIAL, which, in turn, will use the debenture proceeds to fund its planned capital spending (up to $165 million) and to refinance its $288 million bond maturing in February 2022.

The outlook is negative.

Fitch assigns Cliffton notes BB

Fitch Ratings said it assigned Cliffton Ltd.’s proposed dollar-denominated senior secured notes an expected BB rating with a negative outlook.

“Cliffton is an orphan financing vehicle incorporated in Mauritius with no direct linkages to DIAL. The rating reflects the consolidated credit profile of Delhi International Airport Ltd. (DIAL, BB/negative). The green NCDs will be senior ranking in line with other bonds issued by DIAL. We, therefore, rate the proposed U.S.-dollar notes at the same level as DIAL’s issuer default rating (IDR),” Fitch said in a press release.

The proceeds will be used to subscribe to green Indian rupee non-convertible debentures to be sold by DIAL. DIAL will use the majority of those proceeds to refinance its bonds and the balance towards capital expenditure investment in eligible green assets.

The outlook is negative.

S&P rates GC Treasury notes BBB

S&P said it assigned its BBB long-term issue rating to GC Treasury Center Co. Ltd.’s proposed senior unsecured notes. The notes will be drawn down from the company’s $2 billion multi-currency global medium-term note program, rated BBB, which was upsized from $556 million.

GCTC is a wholly owned finance subsidiary of PTT Global Chemical PCL., rated BBB, which guarantees the program and the notes.

Moody’s assigns GC Treasury notes Baa2

Moody’s Investors Service said it assigned a Baa2 senior unsecured rating to the proposed dollar-denominated notes to be issued by GC Treasury Center Co. Ltd., a wholly-owned subsidiary of PTT Global Chemical PCL.

These notes will be guaranteed by Baa2-rated PTTGC on an unsubordinated basis. The notes will be issued under the companies’ global medium-term note program, rated at (P)Baa2.

The outlook is stable.

Moody’s rates Georgia Capital notes B2

Moody’s Investors Service said it assigned Georgia Capital JSC’s $50 million tap under its outstanding notes a B2 rating. The agency also affirmed its probability of default and corporate family rating at B2-PD and B2, respectively. The agency also changed the outlook to stable from negative.

“The affirmation of GCAP’s rating at B2 and the change in outlook to stable was prompted by (i) the material improvement in operating performance of GCAP’s underlying investments during the second half of calendar year 2020, (ii) a significant reduction in market value leverage, (iii) a disciplined capital allocation during the pandemic and a (iv) a stronger business outlook for the next 12 to 18 months than back in June 2020 when we revised our outlook to negative,” Moody’s said in a press release.

Fitch rates Indian Railway notes BBB-

Fitch Ratings said it gave Indian Railway Finance Corp. Ltd.’s proposed dollar-denominated Regulation S senior unsecured notes a rating of BBB-.

The notes will be sold under the company’s $4 billion global medium-term note program. The rating for notes sold under the program is aligned with Indian Railway Finance’s issuer rating because they are the company’s direct, unsecured obligations and rank equally with its other unsecured and unsubordinated debt, the agency said.

The proceeds will be used for funding the acquisition of rail assets, which IRFC will lease to Indian Railways, and to meet the debt-financing requirements of various entities in the Indian railway sector.

The outlook is negative.

S&P rates InRetail, notes BB+

S&P said it assigned BB+ ratings to InRetail Consumer and its planned $750 million of secured notes.

Proceeds will be used to refinance about $735 million of debt at the subsidiary level and for general corporate purposes.

The outlook is stable. The agency said it forecasts InRetail’s net debt to EBITDA will be near 3x in 2021 and drop towards 2.5x in 2022, while it posts solid cash flows despite expansionary capital expenditures (capex), reflected in free operating cash flow (FOCF) to debt of 8%-10% in 2021 and near 20% in 2022.

S&P assigns Japfa notes BB-

S&P said it assigned its BB- long-term issue rating to a proposed issuance of U.S. dollar-denominated senior unsecured notes by PT Japfa Comfeed Indonesia Tbk.

“We equalize the issue rating on the proposed notes with our BB- issuer credit rating on PT Japfa. This is because the issuer primarily operates in Indonesia, a jurisdiction where we believe the priority of claims in a theoretical bankruptcy is highly uncertain due to the weak jurisdictional context,” the agency said in a press release.

The company intends to use most of the proceeds to refinance its $250 million notes due in March 2022. The balance will be used for capital expenditure, working capital and general corporate purposes.

Fitch rates Japfa notes BB-

Fitch Ratings said it assigned PT Japfa Comfeed Indonesia Tbk. ’s planned dollar-denominated notes a BB- rating.

Japfa and certain subsidiaries will guarantee the notes. “The proposed notes are rated at the same level as Japfa’s issuer default rating (IDR), as they will constitute its direct, unsecured and unsubordinated obligations,” Fitch said in a press release.

Japfa plans to use the proceeds to refinance its $250 million of senior unsecured bonds due in March 2022 and for general corporate purposes.

The outlook is stable.

S&P rates Public Power notes B

S&P said it assigned its B issue rating to Public Power Corp. SA’s proposed €500 million of senior unsecured sustainability-linked notes due 2026.

“The B rating reflects that the notes rank equally with PPC’s other unsecured debt in the capital structure. This note issuance is PPC’s first since April 2014,” S&P said in a press release.

Public Power is expected to use about half the proceeds for partial repayment of its Greek banks’ syndicated loans. The remaining part is expected to be used for general corporate purposes and its investment plan.

Moody’s assigns Sappi notes Ba2

Moody’s Investors Service said it assigned a Ba2 rating to the upcoming offering of €350 million senior notes due 2028 by Sappi Papier Holding GmbH, a guaranteed subsidiary of Sappi Ltd. Sappi’s Ba2 corporate family rating, Ba2-PD probability of default rating and all other instrument ratings under Sappi Papier remain unaffected.

“The Ba2 rating assigned to the Sappi Papier’s new senior notes is in line with the company’s Ba2 CFR, given that this layer of debt represents the majority of Sappi’s capital structure,” Moody’s said in a press release.

The offering will be leverage neutral because the proceeds will be used to repay its €350 million senior notes due 2023. “Hence, the company’s Ba2 CFR remains unaffected,” Moody’s said.

The outlook remains negative.

S&P rates Sappi notes BB-

S&P said it assigned its BB- issue rating to the planned €350 million senior unsecured notes, due 2028, to be issued by Sappi Papier Holding GmbH, a wholly owned subsidiary of Sappi Ltd., rated BB-. The recovery rating on the notes is 3, indicating an expectation of meaningful (50%-70%; rounded estimate: 55%) recovery in default.

Sappi intends to use the proceeds to redeem its €350 million 4% notes due 2023. “The transaction does not change our view of the company’s credit quality as it is largely credit neutral, given that it represents a refinancing of existing debt,” the agency said in a press release.

S&P said its ratings and stable outlook on Sappi Ltd. and its debt are unchanged.

Moody’s assigns Sasol bonds Ba2

Moody’s Investors Service said it assigned Ba2 ratings to Sasol Ltd.’s proposed senior unsecured bonds that will be issued by Sasol Financing USA LLC and will be guaranteed by Sasol.

Sasol’s Ba2 corporate family rating and Ba2 ratings on its senior unsecured bonds issued by Sasol Financing International Ltd. and Sasol Financing USA are unaffected, Moody’s said. The negative outlook is also unchanged.

“The Ba2 ratings assigned to the proposed bonds are the same as Sasol’s Ba2 CFR and reflect the pari passu ranking of the debt relative to all of Sasol’s other unsecured and unsubordinated indebtedness. The transaction is leverage neutral as the issuance proceeds will be used to repay a portion of Sasol’s $3.9 billion revolving credit facility (RCF) of which about $3 billion was outstanding as at Dec. 31, 2020,” Moody’s said in a press release.

The notes will extend Sasol’s debt maturity profile and improve its liquidity by creating additional availability under its revolver, the agency said.

S&P rates Sasol notes BB

S&P said it assigned its BB issue rating to Sasol Financing USA LLC’s planned senior unsecured notes. The issuer is a wholly-owned financing subsidiary of Sasol Ltd. The recovery rating is 3, indicating an expectation of meaningful recovery (50%-70%; rounded estimate: 65%) in default.

“Our issuer credit ratings on Sasol Ltd. and BB issue ratings on the senior unsecured debt issued by Sasol Financing USA LLC and Sasol Financing International Ltd. remain unchanged,” the agency said in a press release.

The proceeds will be used to repay a portion of borrowings under its $3.9 billion revolving credit facility, which matures in 2024.

Moody’s assigns Woori Card’s notes A3

Moody’s Investors Service said it gave Woori Card Co., Ltd.’s planned dollar-denominated bonds an A3 foreign-currency senior unsecured debt rating

“The A3 foreign-currency senior unsecured debt rating is in line with Woori Card’s A3 long-term issuer rating,” Moody’s said in a press release.

Woori Card will use the proceeds to finance eligible social financing projects that benefit micro, small- and medium-sized merchants as identified in the company’s social bond management framework.

The outlook is stable.

Moody’s pulls Celesc ratings

Moody’s Investors said it withdrew all the ratings assigned to Centrais Eletricas de Santa Catarina SA (Celesc) and Celesc Distribuicao SA (Celesc D). At the time of withdrawal, there was no instrument rating outstanding.

Celesc D redeemed its R$300 million of senior unsecured debentures backed by Celesc, Moody’s said.

The outlook was stable before the withdrawal.

Moody’s acts on Chinese securities firms

Moody’s Investors Service said it took actions on two Chinese securities firms.

Specifically, Moody’s said it upgraded the Huatai Securities Co. Ltd.’s long-term issuer rating to Baa1 from Baa2 and raised its stand-alone assessment to Baa3 from Ba1. The outlook is stable.

Also, Moody’s lifted Orient Securities Co. Ltd.’s long-term issuer rating and foreign-currency senior unsecured debt rating to Baa2 from Baa3 and raised its stand-alone assessment to Ba1 from Ba2. The outlook is stable.

S&P gives CMT notes A-

S&P said it gave its A- long-term issue rating to the senior unsecured notes issued by CMT MTN Pte. Ltd. under its S$7 billion multi-currency medium-term note program. CMT MTN is a wholly owned subsidiary of CapitaLand Integrated Commercial Trust.

“We equalize the issue rating on the notes with the issuer credit rating on CICT because we believe CICT’s capital structure does not have material contractual or structural subordination risks. The S$460 million notes will mature in 2028 and are guaranteed by HSBC Institutional Trust Services (Singapore) Ltd. in its capacity as trustee of CICT,” S&P said in a press release.

The proceeds will be used to refinance borrowings and for general corporate and working capital purposes.

S&P gives Indian Railway notes BBB-

S&P said it gave a BBB- long-term foreign-currency issue rating to Indian Railway Finance Corp. Ltd.’s upcoming benchmark size senior unsecured of dollar-denominated notes. The notes will be drawn down from the company’s $4 billion global medium-term note program, also rated BBB-.

Fitch gives Public Power notes BB-

Fitch Ratings said it assigned Public Power Corp. SA’s proposed €500 million of sustainability-linked senior unsecured bonds expected ratings of BB-/RR4.

“We believe the potential sale of a 49% stake in Hellenic Distribution Network Operation SA (HEDNO), PPC’s distribution arm, if executed together with assets and associated debt being moved to opco from holdco, could raise structural subordination within the group structure. The sale could see certain loans moved to the level where the assets are located and the ratio for prior ranking debt (secured plus operating company debt)/consolidated EBITDA increase above our threshold for subordination of 2x-2.5x, from 0.7x in September 2020. This could trigger a downgrade of the SU rating for the notes,” Fitch warned in a press release.

Fitch also affirmed Public Power’s long-term issuer default rating at BB-.

The outlook is stable.

Fitch gives Shangyu State-Owned notes BBB-

Fitch Ratings said it assigned a BBB- rating to Shaoxing Shangyu State-owned Capital Investment and Operation Co., Ltd.’s proposed dollar-denominated senior unsecured notes.

“The proposed notes are rated at the same level as SYSC’s issuer default rating (IDR),” Fitch said in a press release.

The proceeds will be used for refinancing, project construction and general corporate purposes.

The outlook is stable.

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