Moody's lowers Rassini view to negative

Moody's Investors Service said it changed today Rassini Automotriz SA de CV's outlook to negative from stable.

Moody's also said it affirmed Rassini's Ba2 corporate family rating.

The outlook revision reflects Rassini's substantial increase in its financial obligations and leverage as Rassini guarantees the new debt used to finance the repurchase of 55% of its shares, the agency explained.

The ratings are supported by the company's leading market position in automotive leaf spring suspension components in North America and Brazil, Moody's said, along with stable operating performance, adequate leverage and positive free cash flow over the last few years.

The ratings are constrained by the highly competitive environment in the automotive supplier industry, along with Rassini's small scale compared to peers and its limited business diversification.

Moody's lowers four Mexico banks

Moody's Investors Service said it downgraded the counterparty risk assessments of four Mexican banks.

Banco Mercantil del Norte, SA's long-term counterparty risk assessment was downgraded to A3(cr) from A2(cr) and short-term counterparty risk assessment to prime-2(cr) from prime-1(cr).

Banco Nacional de Mexico, SA's long-term counterparty risk assessment was downgraded to A3(cr) from A2(cr) and short-term counterparty risk assessment to prime-2(cr) from prime-1(cr).

Banco Santander Mexico, SA's long-term counterparty risk assessment was downgrade to A3(cr) from A2(cr) and short-term counterparty risk assessment to prime-2(cr) from prime-1(cr).

BBVA Bancomer, SA's long-term counterparty risk assessment was downgraded to A3(cr) from A2(cr) and short-term counterparty risk assessment to prime-2(cr) from prime-1(cr).

The action does not affect any other ratings or assessments of the four Mexican banks, Moody's said.

The downgrades reflect the likelihood of a default by the affected banks on their operating obligations and other contractual commitments due to their alignment with the national government, Moody's said.

The agency rates the Mexican government at A3 with a stable outlook.

This assessment incorporates a view that there is a very high default correlation, or dependence, between the banks and the sovereign, the agency said.

Moody's upgrades 12 Russia governments

Moody's Investors Service said it upgraded the ratings of 12 regional governments in Russia and two government-related issuers.

The upgrades reflect an easing in systemic pressures following the upgrade of Russia's sovereign rating to Baa3 from Ba1, Moody's said, as well as idiosyncratic credit improvements.

The City of Moscow to Baa3 from Ba1, City of St. Petersburg to Baa3 from Ba1, Oblast of Moscow to Ba1 from Ba2, Republic of Bashkortostan to Ba1 from Ba2, Republic of Tatarstan to Ba1 from Ba2, Khanty-Mansiysk AO to Ba1 from Ba2, Oblast of Samara to Ba2 from Ba3, Republic of Chuvashia to Ba2 from Ba3, Krai of Krasnodar to Ba3 from B1, Krai of Krasnoyarsk to Ba3 from B1, Republic of Komi to Ba3 from B1 and Oblast of Nizhniy Novgorod to Ba3 from B1.

SUE Vodokanal of St. Petersburg also was upgraded to Ba1 from Ba2 and OJSC Western High-Speed Diameter was upgraded to Ba2 from Ba3.

Moody's also affirmed Oblast of Omsk at Ba3, City of Omsk at B1, City of Krasnodar at B1 and City of Volgograd at B2.

Improvements in tax administration have helped increase revenue from existing sources and expand the tax base for these governments, Moody's said.

Together with tighter cost controls, higher revenues have improved these regions' operating performances in the last two years and also provide greater financial flexibility for through 2021, the agency said.

Following these rating actions, the long-term issuer rating of Oblast of Moscow carries a positive outlook while long-term ratings of all other affected governments are stable.

Moody's upgrades 12 Russian banks

Moody's Investors Service said it upgraded the local- and foreign-currency long-term bank deposits, issuer and senior unsecured debt ratings of 12 financial institutions in Russia.

The upgrades follow a similar upgrade of Russia's sovereign debt rating to Baa3 from Ba1, Moody's said.

The affected banks include Alfa-Bank, AO Raiffeisenbank, Bank VTB PJSC, DeltaCredit Bank, Eximbank of Russia, Gazprombank, JSC DOM.RF, PJSC Rosbank, Rusfinance Bank, Russian Agricultural Bank, Sberbank and VEB.RF.

The outlooks on all of the banks also were changed to stable from positive.

Moody's said the macro profile for Russia remains unchanged at "weak(+)" and the banks' baseline credit assessments and adjusted baseline credit assessments also were unaffected, Moody's said.

The agency also said it upgraded the senior unsecured and subordinated debts, issuer and local currency deposit ratings of six banks, including Sberbank, Bank VTB PJSC, VEB.RF, JSC DOM.RF, Russian Agricultural Bank and Gazprombank.

The agency said it considers that these entities benefit from the enhanced creditworthiness of Russian government given their systemic importance, state ownership and role in discharging public policy, which makes government support for the affected liabilities very likely.

Moody's upgrades State Transport, GTLK

Moody's Investors Service said it upgraded the corporate family rating of State Transport Leasing Co. PJSC to Ba1 from Ba2.

Moody's also said it upgraded the foreign-currency backed senior unsecured debt rating of GTLK Europe DAC to Ba2 from Ba3.

The outlooks were revised to stable from positive.

The upgrade of Russia's sovereign rating to Baa3 from Ba1 led to these upgrades, the agency said.

The agency said it considers that State Transport benefits from the enhanced creditworthiness of Russian government given its systemic importance, government ownership and role in discharging public policy.

The ratings also consider the company's special policy role as a government agent to facilitate the development of the transport sector in Russia, Moody's said.

Fitch: National Development Bank view to negative

Fitch Ratings said it revised the outlook on National Development Bank plc's national long-term rating to negative from stable and affirmed the national long-term rating at A+(lka).

The agency also said it assigned a national long-term rating of A(lka) on the bank's proposed Basel III-compliant subordinated unsecured debentures.

The proposed debentures will total up to 6.5 billion in Sri Lankan rupee with maturities of five years and will be listed on the Colombo Stock Exchange, Fitch said.

They will qualify as Basel III-compliant regulatory tier 2 capital for the bank and include a non-viability clause whereby they will convert to ordinary shares if so determined by regulators, the agency explained.

The proceeds will be used to strengthen the bank's tier 2 capital base and support loan-book expansion, Fitch said.

The ratings reflect the bank's developing franchise and satisfactory asset quality relative to peers, balanced against declining capitalization and above-sector loan growth, the agency said.

The negative outlook considers an expectation of continued pressure on the bank's capitalization, stemming from its rising risk appetite, Fitch said.

Moody's rates Aguas de Itapema notes Ba2

Moody's Investors Service said it assigned first-time corporate family ratings of Ba3 on the global scale and A2.br on the national scale to Companhia Aguas de Itapema.

The outlook is stable.

Moody's also said it assigned Ba2 global scale and Aa3.br national scale ratings to Aguas de Itapema's second issuance of senior secured debentures in the amount ofR$100 million due 2027.

The proceeds will be used to redeem about R$25 million of existing debt that was used to fund the company's expansion plan, the agency said.

The ratings reflect the company's low leverage in the context of its predictable operating profile as an operator of a regulated concession for water and sewage treatment for the city of Itapema, Moody's said.

The ratings also consider its lower size and scale relative to peers in the regulated water utility sector, along with the seasonality inherent to the local economy given the importance of tourism in the summer, the agency said.

The company has exposure to political and social interference due to a recent change in regulator and pending tariff adjustment discussions, Moody's added.

S&P rates Airport Authority Hong Kong notes AA+

S&P said it assigned an AA+ long-term issue rating to a proposed issue of dollar-denominated senior unsecured notes by Airport Authority Hong Kong.

The proposed issuance will be a drawdown from the company's $8 billion medium-term note program.

The rating is the same as the issuer rating on Airport Authority Hong Kong, S&P explained.

The proceeds will be used for construction of a three-runway system, the agency said.

The outlook is stable, the same as that on the government of Hong Kong, S&P said.

The ratings reflect the company's essential role in maintaining Hong Kong as a regional aviation hub, the agency said, and its durable and strong link with the government over the next 24 months.

Fitch rates Bahrain Mumtalakat sukuk BB-

Fitch Ratings said it affirmed Bahrain Mumtalakat Holding Co.'s trust certificate issued through Mumtalakat Sukuk Holding Co. at BB- and assigned an expected BB- rating to the potential sukuk to be issued under the program.

The ratings are in line with Bahrain Mumtalakat's long-term issuer default rating and senior unsecured rating.

Mumtalakat Sukuk is an exempted company with limited liability incorporated in the Cayman Islands, which has been established for the sole purpose of issuing the certificates and owned by Bahrain Mumtalakat, Fitch said.

The proceeds will be used for general corporate purposes, the agency said.

The trust certificate issuance program's ratings are driven solely by Bahrain Mumtalakat's issuer default ratings, Fitch said.

The payment obligations of Mumtalakat will be direct, unconditional, unsubordinated and unsecured, the agency said, and shall at all times rank at least equally with all other present and future unsecured and unsubordinated obligations.

S&P rates China Construction Bank bonds BBB+

S&P said it assigned a BBB+ long-term issue rating to the tier-2 dated capital bonds that China Construction Bank Corp. issued.

The rating on the bonds is two notches lower than the company's issuer credit rating.

S&P said it made a one notch downward adjustment for subordination, along with one notch for the issue's principle write-down feature.

China Construction Bank is a government-related entity that has a very high likelihood of extraordinary support from the government of China in case of distress, the agency said.

S&P said it believes that the government is very likely to take preemptive measures to prevent activation of a non-payment of interest trigger on the bonds.

Fitch rates China Construction Bank bonds BBB+

Fitch Ratings said it assigned an expected rating of BBB+ to China Construction Bank Corp.'s upcoming Basel III-compliant tier 2 subordinated bonds.

The upcoming dollar bonds will be listed on the Hong Kong Stock Exchange and will qualify as the bank's tier 2 capital, Fitch said.

The bonds will have similar features to the company's November 2014 and May 2015 offshore Basel III tier 2 bonds rated BBB+, the agency said.

They will constitute the bank's direct, unsecured and subordinated obligations and rank pari passu without any preference among themselves, Fitch said.

China Construction Bank will have the option to redeem the bonds in full in 2024 and at any time upon obtaining the consent of banking regulators, the agency said.

Fitch said it rates the upcoming bonds two notches lower than the bank's issuer default rating to reflect the bonds' high loss severity relative to senior unsecured instruments in light of their subordination and full write-off feature.

Fitch rates China Cinda notes A

Fitch Ratings said it assigned an expected rating of A to China Cinda Asset Management Co., Ltd.'s proposed senior unsecured dollar-denominated notes.

The proposed notes will be issued by China Cinda Finance (2017) I Ltd. (Cinda Finance I) under its dollar-denominated medium-term note program.

The proceeds of the proposed notes will be used for working capital, investment and other general corporate purposes, Fitch said.

Cinda Finance I is an offshore special purpose vehicle wholly owned indirectly by Cinda.

The notes issued by Cinda Finance I will be unconditionally and irrevocably guaranteed by China Cinda (HK) Holdings Co. Ltd., a wholly owned subsidiary of Cinda.

The notes guaranteed by Cinda HK will be senior unsecured obligations of Cinda HK and rank pari passu with all other unsecured and unsubordinated obligations, Fitch said.

Cinda has granted a keepwell deed and a deed of equity interest purchase, investment and liquidity support undertaking to ensure that Cinda HK and Cinda Finance I have sufficient assets and liquidity to meet their respective obligations under the notes, the agency said.

The notes are rated at the same level as Cinda's issuer default rating, given the strong links between Cinda HK and Cinda, Fitch said.

S&P rates China Cinda Finance notes A-

S&P said it assigned an A- long-term issue rating to a proposed drawdown by China Cinda Finance (2017) I Ltd. from its medium-term notes program.

The issuer is a special-purpose company directly and wholly owned by China Cinda (HK) Holdings Co. Ltd., the guarantor of issuances under the program.

The ratings reflect that the guarantee on the notes is irrevocable, unconditional and timely, S&P said, and therefore qualifies for rating substitution treatment.

These obligations rank equally with all other unsecured and unsubordinated obligations of Cinda HK, the agency added.

The proceeds will be used for working capital, investment and other general corporate purposes, S&P said.

S&P rates Rumo notes brAA+

S&P said it assigned its national scale brAA+ rating to Rumo SA's R$500 million unsecured debentures due 2029.

The agency also said it raised the rating on Rumo Luxembourg Sarl's 2025 senior unsecured notes to BB- from B+ following the revision of the recovery rating on this debt to 4 from 5.

S&P also said it affirmed the BB- rating on Rumo Luxembourg's 2024 senior unsecured notes.

The recovery rating of 3 on this debt is unchanged.

S&P said it believes Rumo has been successfully implementing its investment plan in recent years, which expanded the company's transportation capacity and allowed for infrastructure improvements.

Rumo should continue adding capacity while improving its operating efficiency, which will translate into continued EBITDA growth in 2019, the agency added.

Moody's rates Sunac China notes B2

Moody's Investors Service said it assigned a B2 senior unsecured rating to Sunac China Holdings Ltd.'s proposed dollar-denominated notes.

The proceeds will be used from the issuance mainly to refinance existing debt.

The proposed notes will support Sunac's liquidity profile and will not materially affect its credit metrics because the company will use the proceeds mainly to refinance existing debt, Moody's said.

Supported by an expected increase in revenue recognition from strong contracted sales and controlled spending for land purchases over the next 12- to 18-months, the agency said it expects that Sunac's debt leverage will trend toward 60% to 70%, from about 50% for the 12 months that ended in June 2018.

Sunac's B1 corporate family rating reflects the company's large scale, strong sales execution and well located land bank, along with its likely improvement in land spending, debt management and revenue recognition, Moody's said.

The ratings are constrained by the company's investments in non-core businesses and the increase in investments in joint ventures, the agency added.

S&P rates Sunac China notes B

S&P said it assigned a B long-term issue rating to a proposed issue of dollar-denominated senior unsecured notes by Sunac China Holdings Ltd.

The proceeds will be used to refinance its existing debt.

The outlook is positive.

The notes are rated one notch lower than the issuer credit rating on Sunac to reflect structural subordination risk, S&P explained.

As of June 30, 2018, Sunac's capital structure consists of RMB180 billion in secured debt and RMB30 billion in unsecured debt, the agency said.

As such, Sunac's secured debt ratio is about 86%, which is significantly higher than the notching-down threshold of 50%, S&P said.

The agency said it does not expect the new issuance to have any significant impact on Sunac's credit profile.

The company is expected to maintain strong sales execution and sustainable profitability while continuing to improve its financial leverage through more controlled spending, S&P said.

Fitch rates Sunac notes BB-

Fitch Ratings said it assigned an expected BB- rating to Sunac China Holdings Ltd.'s proposed dollar-denominated senior notes.

The notes are rated at the same level as Sunac's senior unsecured rating because they constitute its direct and senior unsecured obligations, Fitch said.

The ratings reflect an expectation that the company's leverage will likely stay at less than 50% at year-end 2018, the agency said.

Sunac's management has publicly made a commitment to de-leverage and Fitch said it believes there is no pressure for the company to continue adding to its land bank aggressively as it has more than 100 million square miles of saleable gross floor area on an attributable basis, an ample supply that will last for over five years of development, Fitch explained.

Sunac has not been making material land acquisitions after it bought the Wanda City cultural and tourism assets more than a year ago, the agency added.

The ratings also consider Sunac's geographical diversification and strong contracted sales, Fitch noted.

Moody's rates Uzbekistan B1

Moody's Investors Service said it assigned a first-time long-term issuer rating of B1 to the government of Uzbekistan.

The outlook is stable.

Moody's also said it assigned a provisional rating of B1 to Uzbekistan's forthcoming medium-term note program and B1 rating to the planned drawdown from the program.

The ratings on the medium-term note program and drawdown are being assigned ahead of the planned issuance by the Uzbek government in the United States under Rule 144A, the agency explained.

The ratings are supported by Uzbekistan's moderate economic strength, Moody's said.

The economy's shock absorption capacity is underpinned by robust growth potential, supported by demographic trends and balanced by low incomes and very low competitiveness as the economy transitions from a planned, state-owned monopolistic system, the agency said.

The ratings also consider the country's political risks, stemming from a potential rise in opposition to its ongoing reform program and short-term economic and social costs, Moody's said.

Fitch: Auris unchanged after add-on

Fitch Ratings said Auris Luxemburg III Sarl's expected senior secured rating of B+ is unchanged following the issuer's decision to undertake a new €95 million add-on to the issuer's term loan B.

The new debt will be used to finance expenses related to the merger between Sivantos Pte Ltd. and Widex AS, as well as a bolt-on acquisition that closed in December 2018, Fitch said.

Auris is increasing the committed amount under its revolving credit facility by €50 million to €250 million.

The ratings of Lux Midco, which is the holding entity of the group resulting from the merger of Sivantos and Widex, including the long-term issuer default rating of B with stable outlook, are unaffected.

Auris acts as a financing vehicle for the group, Fitch explained.

The proceeds will be used to replace the funding used to acquire Clearwater Clinical and to cover additional transaction fees arising from the merger between Sivantos and Widex, the agency said.

The incremental debt in the capital structure results in slightly lower expected recoveries for the senior secured creditors, S&P said.

Moody's: Mexico, Colombia banks downgraded

Moody's Investors Service said it downgraded the counterparty risk assessments of two Mexican banks' subsidiaries and the counterparty risk assessments and counterparty risk ratings of two Colombian banks.

Banco de Bogota SA's long-term counterparty risk assessment was downgrade to Baa2(cr) from Baa1(cr).

Banco Mercantil del Norte, SA (Cayman I)'s long-term counterparty risk assessment was downgraded to A3(cr) from A2(cr), along with its short-term counterparty risk assessment to prime-2(cr) from prime-1(cr).

Bancolombia SA's long-term counterparty risk assessment was downgraded to Baa2(cr) from of Baa1(cr).

BBVA Bancomer, SA Texas Agency's long-term counterparty risk assessment was downgraded to A3(cr) from A2(cr), along with its short-term counterparty risk assessment to prime-2(cr) from prime-1(cr).

The downgrades reflect the likelihood of a default by the affected banks on their operating obligations and other contractual commitments due to their sovereign ties, Moody's said.

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