Moody’s drops Sound Global, debt

Moody's Investors Service said it downgraded Sound Global Ltd.’s corporate family rating to Caa1 from Ba3 and senior unsecured debt rating to Caa2 from B1.

The outlook was changed to negative from review for downgrade.

Moody’s said the downgrades follow the company's announcement that (a) its external auditor has identified potential audit issues, which are holding up the completion of the company's audited 2014 annual results; (b) its board of directors has resolved to set up an independent review committee and considers engaging independent forensic accountants to conduct an investigation; and (c) an independent non-executive director – who was the chairman of audit committee and nomination committee and a member of remuneration committee of the company – has resigned.

"The downgrade reflects Moody's concern that the company's default risk on its offshore bonds will increase in the near term," Moody's vice president and senior analyst Chenyi Lu said in a news release.

S&P lowers Kinross to negative

Standard & Poor’s said it revised the outlook on Kinross Gold Corp. to negative from stable.

The agency also said it affirmed the company’s BBB- long-term corporate credit and issue-level ratings on the company.

The outlook revision primarily reflects the weakening of the company’s competitive position, S&P said, and the potential that Kinross’ operating diversity and growth prospects could decline in the next two years.

Kinross will generate a greater than previously expected share of earnings and cash flow from its Russian operations, likely beyond 50% in the next two years, the agency said.

The negative outlook also considers potential weakening in its competitive position, S&P said.

S&P lowers Fifth Street view to stable

Standard & Poor’s said it revised the outlook on Fifth Street Finance Corp. to stable from positive.

The agency also said it affirmed the company’s BBB- issuer credit and issue-level ratings.

The outlook revision reflects the company’s weakening operating performance and elevated leverage over the past several quarters that lowered expectations for the company’s ability to improve its capital, leverage and earnings metrics, S&P said.

The company has significantly increased its leverage over the past year, the agency said, and its CLE metrics are weaker than those of similarly rated peers and weigh on the ratings.

Moody’s upgrades Radian, debt

Moody's Investors Service said it upgraded the insurance financial strength ratings of Radian Guaranty Inc. and Radian Mortgage Assurance Inc. (RMA) to Ba1 from Ba2 and upgraded the senior unsecured debt rating of Radian Group Inc. to B2 from B3.

The outlooks are positive, with the exception of Radian Group that has a stable outlook.

In the same action, the agency upgraded the insurance financial strength rating rating of Radian Asset Assurance, Inc. to A3 with a negative outlook from Ba1. The rating of Radian Asset will also be subsequently withdrawn.

These actions conclude the rating review initiated on Dec. 23. The action also has implications for the various transactions wrapped by Radian Asset as discussed later in this press release.

Moody’s said the action was prompted by the announcement by Radian Guaranty, a direct subsidiary of Radian Group, of the consummation of the agreement to sell 100% of the issued and outstanding shares of Radian Asset, its financial guaranty insurance subsidiary, to Assured Guaranty Corp. (AGC, A3 IFS, negative), a subsidiary of Assured Guaranty Ltd. (Baa2, stable). The closing and merger have taken place, and forthwith, Radian Asset's obligations will be obligations of AGC.

S&P lifts Valeant secured debt

Standard & Poor’s said it raised the rating on Valeant Pharmaceuticals International Inc.’s secured debt to BB+ from BB and revised the recovery rating on the debt to 1 from 2.

The 1 recovery rating indicates 90% to 100% expected default recovery.

The ratings also were removed from CreditWatch, where it was placed with positive implications in February.

The upgrade reflects improved recovery prospects for secured lenders following the close of the Salix Pharmaceuticals Ltd. acquisition, as the secured debt is now a smaller proportion of the total debt, S&P said.

The company’s corporate credit rating of BB- is unchanged.

The outlook is stable.

The ratings reflect an expectation for stable performance from Valeant’s existing businesses, S&P said, and that the company will manage its aggressive acquisition-driven growth strategy.

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