Fitch downgrades view Brazil to negative

Fitch Ratings said it revised the outlook on Brazil’s long-term foreign- and local-currency issuer default ratings to negative from stable and affirmed its issuer default ratings at BBB.

The ratings on Brazil’s senior unsecured foreign- and local-currency bonds also are affirmed at BBB.

The country ceiling is affirmed at BBB+ and its short-term foreign-currency issuer default rating at F2.

The outlook revision reflects Brazil’s continued economic underperformance, increased macroeconomic imbalances, deterioration of fiscal accounts and a material increase in government indebtedness, which are increasing downward pressure on the sovereign credit profile, Fitch said.

While the government has begun a macroeconomic adjustment process to boost policy credibility and confidence, downside risks related to its effective implementation and durability persist, especially in the context of a challenging economic and political environment, the agency said.

Additional domestic and external shocks could undermine the pace and scope of the adjustment process, Fitch added.

Fitch downgrades Schahin Oil

Fitch Ratings said it downgraded Schahin Oil and Gas Ltd.’s foreign- and local-currency issuer default ratings to C from B- and removed the Rating Watch negative.

The downgrade follows the continuing deterioration of Schahin’s credit quality and its exposure to current depressed market conditions, Fitch said.

The company has not succeeded in refinancing its short-term debt, which further pressures its already tight liquidity position, the agency said.

Allegations that the engineering unit of the Schahin Group, Schahin Engenharia, would be involved in the Lava-Jato investigation contribute to aggravating the situation, Fitch added.

Moody’s lifts five Greek banks

Moody's Investors Service said it upgraded the local-currency deposit ratings of National Bank of Egypt SAE, Banque Misr SAE, Banque Du Caire SAE and Commercial International Bank (Egypt) SAE to B3 from Caa1 as well as the local-currency deposit ratings of Bank of Alexandria SAE to B2 from B3.

The standalone ratings of all five banks were also upgraded by one notch.

Moody’s said the actions capture: (a) The improved operating environment in Egypt, which will benefit the banks' business prospects and asset quality; (b) the improved quality of the banks' liquidity buffers; and (c) the government's improved capacity to support these banks, in case of need.

These actions follow the improvement in Egypt's sovereign creditworthiness, as reflected by Moody's decision to upgrade Egypt's bond ratings to B3 from Caa1.

Concurrently, the banks' foreign-currency deposit ratings were upgraded to Caa1 from Caa2 to reflect the increase in the foreign-currency deposit ceiling for Egypt to Caa1.

S&P upgrades Multibank

Standard & Poor’s said it raised the issuer credit rating on Multibank to BBB-/A-3 from BB+/B.

Its stand-alone credit profile is BBB-.

The outlook is stable.

The upgrade reflects the bank’s moderate business position, adequate risk positions, average funding within the Panamanian banking industry and adequate liquidity, the agency said.

S&P said it classifies the banking sector of Panama to reflect the country’s low per capita GDP which, combined with already high household0debt levels, limits people’s ability to take on more debt.

But the country’s fast-paced economic growth has increased its economic diversification, the agency said.

Moody’s changes China Oil outlook to negative

Moody's Investors Service said it changed the outlook of China Oil and Gas Group Ltd.’s (COG) Ba1 corporate family rating and senior unsecured debt rating to negative from stable.

Both ratings were affirmed.

"The negative outlook reflects COG's weak earnings and increased leverage due to prolonged delays in implementing cost pass-through for its Qinghai projects and the weak performance of its upstream business," Moody's assistant vice president and analyst Ivy Poon said in a news release.

"While we expect modest improvements in earnings in the next 12-18 months, the company's projected metrics will remain weak for the current rating, given the challenges of its Qinghai projects and the weakness in oil prices."

Fitch: Japfa view to negative

Fitch Ratings said it revised PT Japfa Comfeed Indonesia Tbk.’s outlook to negative from stable.

The agency also said it affirmed Japfa’s long-term issuer default rating at BB-, along with its national long-term rating at A+(idn) and the A+(idn) rating on its Rp 1.5 trillion bonds due in 2017.

Japfa’s senior unsecured rating and the rating on its senior unsecured dollar-denominated notes due in 2018 issued by Comfeed Finance BV also were affirmed at BB-.

The outlook revision reflects a view that Japfa’s financial flexibility is under strain amid an uncertain market outlook, Fitch said.

Weak demand growth and high supply led to thinner margins for Japfa in 2014, the agency said. As a result, its net debt-to-EBITDA ratio was 3.7x, exceeding the 2.5x negative rating action threshold.

Fitch said it expects the company to de-leverage to 2.5x by 2017, driven by earnings growth and underpinned by the robust long-term growth potential for the Indonesian poultry industry.

Moody’s revises India to positive

Moody's Investors Service said it affirmed the Government of India's Baa3 issuer and senior unsecured ratings and changed the outlook to positive from stable.

India's P-3 short-term local currency issuer rating was also affirmed.

Moody’s said the outlook change is due to its view that India's policymakers are establishing a framework that will likely: allow India's growth to continue to outperform that of its peers over the medium-term; and improve India's macroeconomic, infrastructure and institutional profile.

Moody’s revises Indian GRIs to positive

Moody's Investors Service said it took number of rating actions on Indian non-financial government-related issuers following its earlier announcement that it had changed the outlook on India's Baa3 sovereign rating to positive from stable.

As a result of the sovereign rating action, the agency changed the outlook on the ratings of the following companies:

• Indian Oil Corp. Ltd. (IOC): Affirmed Baa3 foreign currency issuer and debt ratings and revised outlook to positive from stable. The ba2 baseline credit assessment remains unchanged;

• Bharat Petroleum Corp. Ltd. (BPCL): Affirmed Baa3 foreign currency issuer and debt ratings and revised outlook to positive from stable. Also affirmed the provisional Baa3 ratings on the medium-term note program. The ba2 baseline credit assessment remains unchanged; and

• NTPC Ltd.: Affirmed Baa3 issuer rating and revised outlook to positive from stable. The baa3 baseline credit assessment remains unchanged.

The ratings and outlooks of the following non-financial government-related issuers remain unchanged:

• Oil and Natural Gas Corp.: Local currency issuer rating: Baa1 stable; foreign currency issuer rating: Baa2 stable; BCA: baa1;

• Oil India Ltd.: Local and foreign currency issuer and foreign currency debt ratings: Baa2 stable; BCA: baa2; and

• GAIL (India) Ltd.: Local and foreign currency issuer rating: Baa2 stable; BCA: baa2.

Moody's also assigned a definitive Ba1 senior secured rating to Delhi International Airport Pty Ltd.'s $288 million senior secured bond and a definitive Ba1 corporate family rating. The outlook is stable.

"The change in outlook to IOC's and BPCL's ratings reflect the strategic importance of oil marketing companies as they own and operate the majority of the country's fuel refining entities and most of the fuel distribution infrastructure. The issuer ratings of IOC and BPCL will be upgraded if the sovereign rating is upgraded," Moody's vice president and senior credit officer Vikas Halan.

Fitch rates Turkiye Sinai Kalkinma notes BBB-

Fitch Ratings said it assigned an expected long-term rating of BBB- to Turkiye Sinai Kalkinma Bankasi AS’s new $350 million senior unsecured notes issue.

The bank’s management expects that the issue, which would be the first drawdown under its $750 million bond program, will be placed in the second quarter of 2015, Fitch said.

The expected issue rating is in line with the bank’s long-term issuer default ratings of BBB-.

The ratings reflect the bank’s policy role and are based on a high probability of support, if required, from the Turkish government, the agency said.

The bank’s other ratings are unaffected, including its short-term issuer default rating of F3, local-currency long-term issuer default rating of BBB, local-currency short-term issuer default rating of F3 and national long-term rating of AAA(tur).

Fitch rates Yapi Kredit Faktoring BBB

Fitch Ratings said it assigned a long-term issuer default ratings of BBB to Yapi Kredi Faktoring AS, along with a short-term foreign- and local-currency issuer default ratings of F3 and national long-term rating of AAA(tur).

The outlook is stable.

The ratings of Yapi Kredi Faktoring are equalized with those of its sole owner, parent company Yapi ve Kredi Bankasi AS.

This reflects a view that it is a core, highly integrated subsidiary of the bank and the parent has a high propensity to support Yapi Kredi Faktoring should it be required, Fitch said.

The company shares its parent’s branding, key risk assessment systems and customers, the agency said.

S&P: ACI Airport notes BB+

Standard& Poor’s said it assigned a BB+ preliminary rating to ACI Airport Sudamerica SA’s $200 million senior secured notes due in 2032.

The outlook is stable.

ACI Airport is a special purpose vehicle that will issue the proposed guaranteed notes.

The notes will be fully and unconditionally guaranteed by airport operator Cerealsur SA.

The proceeds will be used to repay a bank loan outstanding at Cerealsur subsidiary Puerta del Sur SA, S&P said, and distribute a one-time dividend to its shareholders.

Cerealsur will use dividends from Puerta del Sur to pay off most of the proposed notes, the agency said. Therefore, the debt is viewed as a holding issuance, S&P said.

Moody’s gives Emisora Santander program Baa1

Moody's Investors Service said it assigned provisional Baa1 long-term senior ratings to the €5 billion program established by Emisora Santander Espana, SAU.

Notes to be issued under the program carry an unconditional and irrevocable guarantee from Banco Santander, SA (Spain) (deposits Baa1 on review for upgrade/senior unsecured Baa1 on review for upgrade, BCA baa1).

The ratings are on review for upgrade, mirroring the review status on Banco Santander's ratings.

Moody's rates the senior unsecured obligations of Emisora Santander Espana at the same level as its parent, Banco Santander. The ratings are based on the unconditional and irrevocable guarantee that Banco Santander provides.

The senior notes rank pari passu with the senior unsecured debt of Banco Santander.

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