Moody’s ups EVN debt

Moody’s Investors Service said it upgraded to A1 from A2 the senior unsecured ratings of EVN AG.

The outlook was changed to stable from positive.

“The upgrade reflects EVN's track record of maintaining a financial profile commensurate with the rating agency's ratio guidance for the A1 rating level and an expectation that this will continue,” the agency said in a news release.

S&P cuts Vornado Realty Trust; bonds unchanged

S&P said it downgraded its issuer credit rating on Vornado Realty Trust and its operating partnership, Vornado Realty LP (collectively, VNO), to BBB from BBB+.

At the same time, S&P affirmed the BBB issue-level ratings on the company's unsecured debt given the improved level of secured debt to total assets following the JV transaction.

“The downgrade on VNO's issuer credit rating reflects our view that its competitive position is somewhat weakened from the transfer of $5.6 billion of retail assets into an unconsolidated JV. The transfer results in reduced scale and asset diversity as well as slightly weaker operating margins,” S&P said in a news release.

“In addition, we had previously assumed that VNO would be selling assets to modestly reduce leverage in advance of rising development funding needs. But we now expect S&P Global Ratings' adjusted debt to EBITDA to remain relatively flat at around 8x for the next two years.”

Moody’s lifts Fiat Chrysler

Moody's Investors Service said it upgraded to Ba1 from Ba2 the corporate family rating and to Ba1-PD from Ba2-PD the probability of default rating of Fiat Chrysler Automobiles NV.

Also, the ratings on senior unsecured instruments issued by Fiat Chrysler Automobiles and Fiat Chrysler Finance Europe SA were upgraded to Ba2 from Ba3.

The outlook was changed to stable from positive.

“FCA's upgrade reflects the continued improvements in its credit metrics and Moody's expectation that FCA will be able to sustain these credit metrics even in a more challenging environment with softening demand in some of its key markets and additional costs to comply with upcoming emission requirements,” Falk Frey, a senior vice president and lead analyst at Moody’s, said in a news release.

Fitch rates Credit Andorra notes B+, BBB-

Fitch Ratings said it assigned Credit Andorra SA's planned additional tier 1 and subordinated notes expected ratings of B+ and BBB-, respectively.

“The subordinated notes are notched down once from Credit Andorra's bbb viability rating (VR). The notching reflects the notes' greater expected loss severity relative to senior unsecured debt,” the agency said in a news release.

“These securities are subordinated to all senior unsecured debt.”

Moody’s rates Emerson Electric notes A2

Moody's Investors Service said it assigned an A2 rating to Emerson Electric Co.'s new senior notes due 2024.

The issuance does not impact other ratings of Emerson, including the A2 senior unsecured or P-1 short-term ratings, Moody’s said.

The outlook is stable.

“Emerson's debt ratings reflect the company's sizeable and broadly diversified revenue base, and its leading market positions among its largest product offerings,” the agency said in a news release.

Fitch rates Enel notes BBB

Fitch Ratings said it assigned Enel SpA's (A-/stable) proposed benchmark callable deeply subordinated capital securities an expected rating of BBB.

The proposed securities would qualify for 50% equity credit.

“The hybrid notes are deeply subordinated and rank senior only to Enel's share capital, while coupon payments can be deferred at the option of the issuer. These features are reflected in the BBB(EXP) rating, which is two notches lower than Enel's senior unsecured rating,” the agency said in a news release.

Moody’s rates Enel hybrid Ba1

Moody's Investors Service said it assigned a Ba1 long-term rating to the junior subordinated hybrid capital security to be issued by Enel SpA.

The outlook is stable.

The size and completion of the hybrid are subject to market conditions.

“The Ba1 rating assigned to the hybrid is two notches below Enel's senior unsecured rating of Baa2, reflecting the features of the hybrid. It is very long-dated, deeply subordinated and Enel can opt to defer coupons on a cumulative basis,” the agency said in a news release.

“The rating is in line with those of the existing hybrid notes issued by the company.”

Fitch to rate KKR notes A

Fitch Ratings said it assigned a long-term issuer default rating of A to KKR Group Finance Co. V LLC, an indirect subsidiary of KKR & Co. Inc.

The outlook is stable.

Concurrently, Fitch expects to assign an unsecured debt rating of A to the proposed €650 million 10-year 1.625% senior notes issued by KKR Group Finance. The final maturity will be determined at the time of issuance.

“The rating on the proposed unsecured notes is equalized with KKR's existing unsecured debt as the issuance will rank equally in the capital structure,” the agency said in a news release.

S&P rates Ryder System notes BBB+

S&P said it assigned its BBB+ issue-level rating to Ryder System Inc.'s proposed senior unsecured medium-term notes.

The company plans to use the proceeds from these notes to refinance its existing debt and for general corporate purposes.

“Our long-term BBB+ issuer credit rating on Ryder reflects the company's strong position as one of the two major participants in the full-service truck leasing market and the strong and stable cash flows this business generates,” S&P said in a news release.

Moody’s changes Becton Dickinson view

Moody's Investors Service said it affirmed all of Becton, Dickinson & Co.'s ratings including the Ba1 corporate family rating, Ba1-PD probability of default rating, Not Prime commercial paper rating, SGL-1 speculative grade liquidity rating and the Ba1 senior unsecured rating.

The outlook was revised to positive from stable.

“The revision in the outlook to positive considers the deleveraging progress that BD has made since the closing of the Bard acquisition in December 2017,” Moody's senior vice president Scott Tuhy said in a news release.

S&P removes Chevron from watch; view stable

S&P said its issuer credit and senior unsecured ratings on Chevron Corp. remain AA and the short-term and commercial paper ratings on the company remain A-1+. S&P removed the ratings from CreditWatch with negative implications.

Anadarko Petroleum has terminated its merger agreement with Chevron, following its acceptance of Occidental Petroleum's rival offer. Chevron has received a $1 billion breakup fee. Chevron has increased expected share repurchases to $5 billion per year.

“We are returning the outlook to stable, reflecting our expectation that Chevron will maintain funds from operations (FFO)/debt above 60% and debt/EBITDAX below 1.5x, while increasing production 4%-7% in 2019 and attaining a compound average growth rate of 3%-4% through 2023,” S&P said in a news release.

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