Fitch lowers Ellaktor

Fitch Ratings said it downgraded Ellaktor SA's long-term issuer default rating and Ellaktor Value plc's €670 million of notes to B+ from BB.

“The downgrades reflect our view that Ellaktor's ability to achieve the leverage guidance of around 3x in 2023 has reduced. Unexpected cash leakages from the restricted group to support the construction business represent the loosening of a prudent financial policy and weakening of our assumptions about the strength of the ring-fence. Lower economic growth and Covid-19 disruption to the company's concession business support the downgrade. The company's solid liquidity position and the absence of immediate refinancing needs are positive for the rating,” said Fitch in a press release.

The outlooks are negative.

Fitch downgrades EnBW

Fitch Ratings said it downgraded EnBW Energie Baden-Wuerttemberg AG's long-term issuer default rating to BBB+ from A-. The outlook is stable. Fitch affirmed the senior unsecured rating at A- and subordinated long term rating at BBB, reflecting an uplift to the debt ratings, due to the rising share of regulated EBITDA.

“The downgrade mainly reflects the impact of increased capital investments, including the acquisitions of Valeco and Plusnet, on EnBW's leverage metrics, which we forecast outside of our previous sensitivities for an A- IDR,” the agency said in a press release.

However, a continued shift in the EBITDA mix away from conventional generation to renewables supports a stronger business model, debt rating uplift and higher headroom at the new IDR level which Fitch views as consistent with the company's internal capital structure and growth targets.

Fitch places Carlson Travel on watch

Fitch Ratings said it placed Carlson Travel, Inc.'s B+ issuer default rating, BB+/RR1 senior secured debt, and B+/RR4 senior unsecured debt on rating watch negative.

The RWN is based on the severe disruption to global travel caused by the coronavirus outbreak as well as the unknown depth and duration of the outbreak's impact, which will significantly weigh on the company's liquidity in the near term.

Fitch estimates the company has roughly five months of aggregate liquidity based on anticipated cash burn. This considers levers the company can exercise around its cost structure, including labor, as well as capital expenditures. Fitch expects to resolve the RWN within the next one to two months based on the evolution of the company's liquidity

Fitch changes ConEd view to negative

Fitch Ratings said it changed the outlooks for Consolidated Edison, Inc. and its regulated utility subsidiaries Consolidated Edison Co. of New York, Inc., Orange & Rockland Utilities, Inc. and Rockland Electric Co. to negative from stable.

The outlook revision reflects Fitch's view that Consolidated Edison’s service territory has been severely affected by the coronavirus, and as such, Consolidated Edison’s and major subsidiary Consolidated Edison Co. of New York's credit metrics are likely to weaken.

Of particular concern is the revenue impact from lower kilowatt-hours sales and escalation of bad debt expense, especially in light of Governor Cuomo's executive order to "stay at home" and the resultant shuttering of non-essential commercial businesses.

Fitch affirmed all of the issuer and debt ratings.

Fitch rates Berkshire notes A+

Fitch Ratings said it assigned an A+ rating to the €1 billion of senior notes issued by Berkshire Hathaway Inc. and $500 million of senior notes issued by Berkshire Hathaway Finance Corp.

Berkshire’s euro-denominated senior unsecured notes carry a 0.000% coupon and mature in 2025. The new note issuance replaces the €1 billion of notes that matured on March 13.

The $500 million senior unsecured carry a 1.850% coupon and mature in 2030. The notes are guaranteed by Berkshire Hathaway. The new debt issuance replaces $350 million that matured in January.

The ongoing coronavirus pandemic and related economic and investment market volatility will have effects on performance for each major Berkshire Hathaway business segment in 2020. Uncertainty regarding the duration and severity of this event and ultimate success of recent public policy actions makes it difficult to project the overall impact on the company’s consolidated operations. However, Berkshire Hathaway’s diverse business profile, history of operating success and balance sheet strength position the company well for potential adversity, Fitch said.

Moody's assigns Pfizer notes A1

Moody's Investors Service said it assigned an A1 rating to the new senior unsecured notes being issued by Pfizer Inc.

This rating is under review for downgrade, consistent with other senior unsecured ratings of Pfizer. There are no changes to Pfizer's existing ratings including the A1 long term rating (under review for downgrade).

Proceeds will be used to finance or refinance projects related to Pfizer's environmental and social initiatives.

S&P rates Pfizer notes AA-

S&P said it assigned its AA- issue-level rating to Pfizer Inc.'s senior unsecured notes and placed them on CreditWatch with negative implications. “We expect the company will likely issue $1 billion and use the proceeds for environmental and social projects. Pending allocation to projects, the company can use the proceeds to refinance and redeem existing debt, in a leverage-neutral transaction,” S&P said in a press release.

The AA- long-term issuer credit rating on Pfizer is on CreditWatch with negative implications. “We expect to lower the rating one notch to A upon the consummation of the Upjohn divestiture scheduled to close later this year. We view that divestiture transaction as modestly negative to Pfizer's business strength, because it weakens the company's therapeutic diversification and scale (that segment represents about 20% of revenues),” said S&P.

S&P puts Engie on watch

S&P said it placed Engie SA’s ratings on CreditWatch with negative implications to reflect growing operating pressures at a time when the company's governance is more vulnerable.

“Given a likely European economic slowdown in the context of the Covid-19 pandemic, we believe that Engie SA's earnings could be pressured by lower contributions from its more cyclical clients solution business, and by lower power prices on unhedged positions growing from 2021,” said S&P in a press release.

“Engie's financial headroom has tightened following an acquisitive 2019 and upward revisions of its nuclear provisions. We believe that the group's current rating cannot withstand any operational underperformance without credit-protective measures,” the agency said.

S&P plans to resolve the CreditWatch placement after it assesses the extent of the downside risks and the group's action plan to counterbalance lower earnings prospects, and once it has evidence of Engie’s commitment to support credit metrics including FFO to net debt above 20%.

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