S&P drops Siderurgica Nacional

Standard & Poor's said it downgraded Companhia Siderurgica Nacional (CSN) to BB+ from BBB- on the global scale and to brAA from brAAA on the national scale.

The national scale rating was removed from CreditWatch negative.

The outlook on the global scale rating remains negative.

Iron ore prices have plummeted to levels below $80 per ton in September 2014 from more than $120 at the beginning of 2014 (price levels refers to 62% Fe content delivered in China), the agency said.

Under such price levels, S&P said it expects Siderurgica Nacional’s financial risk profile to remain pressured at least through 2017. The company's operating performance is suffering from a softer-than-expected demand for steel in Brazil, as the economy is weakening.

In addition, Siderurgica Nacional is expanding its Casa de Pedra iron ore mine, which limits its ability to deleverage. The agency expects Siderurgica Nacional to post a shortfall in free cash flow of R$500 million to R$1 billion in both 2015 and 2016.

S&P ups Lupatech, ratings on watch

Standard & Poor's said it raised its corporate credit rating on Lupatech SA to CCC- from D on the global scale and to brCCC- from brD on the Brazilian national scale.

The agency withdrew the D rating on Lupatech Finance Ltd.'s perpetual bond, given that it will no longer exist.

The ratings were also placed the ratings on CreditWatch positive.

Lupatech completed its restructuring plan, converted its capital market debts (85% of debenture and perpetual bond to equity and 15% in new notes) to equity, and renegotiated banking debt including a partial equity exchange.

S&P said the CreditWatch positive listing reflects a possible upgrade within the next 90 days after it reassesses the company's credit quality under its new capital structure, taking in consideration the potential improvements in its liquidity and business plan.

Fitch lifts JBS notes

Fitch Ratings said it has upgraded JBS SA’s foreign and local currency issuer default ratings and senior unsecured notes to BB from BB-.

Fitch has also affirmed and withdrawn the issuer default ratings of JBS Finance II Ltd. and JBS USA Finance Inc.

The outlook is stable.

The agency noted that the upgrade reflects JBS' improved business profile following its successful integration of Seara Brazil, whose well-branded and less volatile operation has enhanced JBS' business portfolio.

The upgrade also reflects the company's strong products and geographical diversification, as well as the successful integration of several businesses over the past few years, according to Fitch.

S&P could lower Eurasian Natural

Standard & Poor's said it placed its B/B long- and short-term corporate credit ratings on Kazakh mining company Eurasian Natural Resources Corp. plc on CreditWatch with negative implications.

The CreditWatch placement follows a significant iron ore price decline in 2014 and the agency’s revision of its iron ore price assumptions for the rest of the year and for 2015-2016.

S&P now expects prices to stabilize at around $85 per metric ton (/mt) 62% CFR China, $10 lower than its previous assumption. It is aware that prices may decline further, with the current iron ore spot price at about $80/mt.

S&P rates Domodedovo Airport BB+/B

Standard & Poor's said it assigned its BB+/B long- and short-term corporate credit ratings to Domodedovo International Airport CJSC, an operating subsidiary of Russian airport operator DME Ltd.

The outlook is stable.

At the same time, the agency affirmed its BB+/B long- and short-term corporate credit ratings on DME and fully owned subsidiary Hacienda Investments Ltd. it also affirmed the BB+ issue rating on the loan participation notes issued by special-purpose vehicle DME Airport Ltd. The pass-through loan has a recovery rating of 3.

S&P said the long-term rating on Domodedovo reflects that on DME, because it sees Domodedovo as being a core subsidiary of its parent. The agency bases this view on the fact that Domodedovo is 100% owned by DME and that Domodedovo serves as a guarantor for the group's liabilities under the syndicated loan facility and the eurobond issue. Eurobond documentation stipulates the cross-default of liabilities.

Fitch rates Pelindo III bonds BBB-

Fitch Ratings said it has assigned PT Pelabuhan Indonesia III (Persero)’s (Pelindo III; BBB-/stable) $500 million senior unsecured bonds a final rating of BBB-.

The dollar bonds are rated at the same level as Pelindo III's issuer default rating of BBB- because they constitute direct, unconditional and senior unsecured obligations of the company, the agency said.

Fitch noted that the company plans to use the proceeds from the bond issue to refinance some loans, fund its expansion plans and for general corporate purposes.

Pelindo III's ratings reflect its standalone credit profile, which benefits from its entrenched market position with limited competition in the regions it operates in, direct ownership of most of its assets, robust growth prospects and stable profitability and operating cash generation, the agency noted.

Moody’s assigns RHB Bank notes A3

Moody's Investors Service said it assigned its A3 foreign currency debt rating to the $300 million fixed-rate senior unsecured notes due in October 2019 to be issued by RHB Bank Bhd. (deposits A3 stable, bank financial strength rating D+ stable/baseline credit assessment ba1).

The notes will be issued under RHB Bank's $5 billion euro medium-term note program.

The outlook is stable.

Moody’s said the A3 senior unsecured debt rating is based on RHB Bank's ba1 baseline credit assessment and the very high likelihood of systemic support in case of need.

The ba1 baseline credit assessment reflects the bank's good financial fundamentals, especially its asset quality, dominant banking franchise, stable liquidity profile and strong capital adequacy. It also takes into consideration the bank's modest profitability and funding profile, Moody’s said.

Moody’s: Asian-Pacific view to negative

Moody's Investors Service said it changed the outlook on Asian-Pacific Bank's B2 long-term foreign and local-currency deposit ratings and B2 senior debt ratings to negative from stable.

The negative outlook reflects increased pressure on Asian-Pacific Bank's asset quality and profitability, following a deterioration in quality of Russian retail portfolios.

Concurrently, the ratings were affirmed, along with the bank's Not Prime short-term foreign currency and local currency deposit ratings. The agency also affirmed the bank's E+ standalone bank financial strength rating, which maps into a baseline credit assessment of b2, with a stable outlook.

Moody’s said the outlook change was is driven by (a) the pressure on asset quality and profitability related to heightened risks in the bank's consumer loan portfolio; (b) the bank's relatively low reserve coverage of non-performing loans; and (c) pressure on currently moderate capital adequacy as additional provisioning charges are likely to be needed.

Fitch: Khanty-Mansyisk outlook negative

Fitch Ratings said it has affirmed Khanty-Mansyisk Autonomous Region's long-term foreign and local currency issuer default ratings at BBB, its short-term foreign currency issuer default rating at F3 and its national long-term rating at AAA(rus).

The outlooks are negative on the long-term issuer default ratings and stable on the national long-term rating.

The affirmation reflects Fitch's unchanged baseline scenario regarding an expected improvement in the region's operating performance in the medium term, its robust economy and low debt.

The agency said that the ratings also consider the concentration of the region's tax base in the oil and gas sector, wider than historically low deficit before debt variation and lower cash reserves.

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