S&P: Cleco view developing

Standard & Poor’s said it affirmed its BBB+ issuer credit ratings on Cleco Corp. and Cleco Power LLC and the BBB+ unsecured debt rating on Cleco Power.

S&P revised the outlook to developing from stable.

“The company’s completion of its transformation to a utility-only holding company bolsters its credit profile, but simultaneously the company is engaged in a protracted strategic review that could negate the improvements or result in a transaction that could otherwise affect ratings,” said S&P credit analyst Todd Shipman in a news release.

Moody's cuts Cliffs Natural

Moody’s Investors Service said it downgraded the senior unsecured debt ratings of Cliffs Natural Resources to Ba1 from Baa3 and the senior unsecured shelf rating to provisional Ba1 from provisional Baa3 and assigned a Ba1 corporate family rating and a Ba1-PD probability of default rating.

At the same time, Moody's assigned a speculative-grade liquidity rating of SGL-1.

This concludes the review for downgrade initiated on July 25, the agency stated.

The outlook is negative.

The downgrade in the senior unsecured ratings to Ba1 and assignment of the Ba1 corporate family rating reflects its expectations that, despite Cliffs' progress in reducing costs, particularly in its Eastern Canadian and Asia Pacific iron ore operations, continued headwinds pressuring fundamentals and pricing in the iron ore and metallurgical coal industry will result in compression of debt protection metrics and increased leverage through at least 2015.

Fitch rates HCP notes BBB+

Fitch Ratings said it has assigned a BBB+ rating to the $800 million of 3.875% senior unsecured notes due 2024 issued by HCP, Inc.

The notes were priced at 99.63% of par to yield 3.92%, a 150 basis points spread to the benchmark Treasury, the agency said.

Net proceeds from the offering are expected to be used to repay amounts outstanding under the revolving line of credit and for general corporate purposes, which may include the funding of a portion of the $334 million cash contribution for the Brookdale / Emeritus transaction.

The ratings reflect HCP's credit strengths, namely the steady and predictable cash flows from a large portfolio of health care properties, maintenance of leverage and fixed-charge coverage metrics appropriate for the rating category, manageable lease and debt maturity schedules, financial flexibility stemming from a large unencumbered pool and appropriate liquidity. Fitch said.

Fitch rates PG&E notes A-

Fitch Ratings said it has assigned an A- rating to Pacific Gas and Electric Co.'s $350 million new issuance of 3.4% senior unsecured notes due Aug. 15, 2024.

Fitch also rated PG&E’s additional $225 million issuance of its 4.75% senior notes due Feb. 15, 2044 A-. Proceeds from the offering will be used for general corporate purposes, including repayment of a portion of its commercial paper balances.

The outlook is stable.

The agency noted that factors affecting ratings include the effect of unrecoverable costs and fines related to the San Bruno accident on PG&E’s financials and the ability of management to regain the confidence of its core constituencies in the wake of the San Bruno pipeline disaster.

DBRS rates RioCan debentures BBB (high)

DBRS said it assigned a rating of BBB (high) with a stable trend to RioCan Real Estate Investment Trust’s C$100 million reopening of series V senior unsecured debentures due May 30, 2022.

DBRS rated the original issuance (C$150 million) at BBB (high) with a stable trend on May 27.

DBRS notes that this reopening of series V bonds does not change the previously assigned rating.

S&P rates Union Pacific notes A

Standard & Poor’s said it assigned its A issue rating to Union Pacific Corp.’s $350 million senior unsecured notes due 2025 and $350 million senior unsecured notes due 2045.

S&P said the ratings on Union Pacific reflect the U.S. freight railroad industry’s favorable risk characteristics and the company’s solid competitive position, moderate financial policies and strong liquidity.

Price competition from other railroads and trucking companies on selected commodities and the company’s high capital requirements, which is typical of the industry, somewhat offset these strengths, the agency said.

Moody's gives Berkshire notes Aa2

Moody's Investors Service said it has assigned an Aa2 rating to Berkshire Hathaway Inc.'s $750 million of senior unsecured fixed-rate notes due August 2019.

In the same rating action, Moody's said it has assigned a Aa2 rating to Berkshire Hathaway Finance Corp.'s $400 million of senior unsecured floating-rate notes due August 2017, which are unconditionally and irrevocably guaranteed by Berkshire.

Net proceeds from the Berkshire notes will be used to redeem $750 million of Berkshire notes maturing in August 2014, while net proceeds from the Berkshire Hathaway Finance notes will be used to replace $400 million of notes that matured in July 2014.

The outlook is stable.

Moody's said that Berkshire's ratings reflect its strong market presence in its principal (re)insurance operations, the diversification of its earnings from both regulated and non-regulated businesses and its sound balance sheet.

Moody’s gives Smucker program A3

Moody’s Investors Service said it assigned a Prime-2 short-term rating to the J.M. Smucker Co.'s new $1 billion commercial paper program.

Smucker's A3 senior unsecured long-term rating was affirmed, the agency said, adding that the commercial paper will rank equally with the company's existing senior unsecured indebtedness.

Proceeds will be used for general corporate purposes.

The commercial paper program is backed by Smucker's $1.5 billion senior unsecured revolving credit facility expiring in September 2018.

S&P affirms Canadian Natural Resources

Standard & Poor’s said it affirmed its ratings, including its BBB+ long-term corporate credit rating, on Canadian Natural Resources Ltd. The outlook is stable.

“Following our review of CNRL’s credit rating, we have revised our assessment of its business risk profile to ‘strong’ from ‘satisfactory,’ reflecting our view of its overall competitive position and profitability,” S&P said in a news release. “As a result of the revised business risk profile, we have revised the anchor score for the company to bbb+ from bbb.”

S&P affirms Darden

Standard & Poor’s said it affirmed all of its ratings on Darden Restaurants Inc., including the BBB- corporate credit rating, and removed them from CreditWatch with developing implications.

The outlook is negative.

“The rating affirmation reflects our expectation that the company will make progress with improving results at Olive Garden and it will also maintain credit metrics in line with a low investment-grade rating, following its $1 billion debt repayment,” said S&P credit analyst Helena Song in a news release.

“Pro forma for the sales transaction and debt repayment, we estimate adjusted debt to EBITDA to be about 3.0x at fiscal year-end 2014.”

S&P affirms Encana

Standard & Poor’s said it affirmed its ratings, including its BBB long-term corporate credit rating, on Encana Corp. The outlook is stable.

“We have revised the anchor score to bbb from bbb- to reflect our view of the company’s significantly increased liquids production following the completion of the Eagle Ford acquisition, which we expect to increase Encana’s cash flow to a significant degree,” said S&P credit analyst Aniki Saha-Yannopoulos in a news release.

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