Moody's upgrades Murray

Moody's Investors Service said it upgraded Murray Energy Corp.’s corporate family rating to B2 from B3, probability of default rating to B2-PD from B3-PD, senior secured term loan to Ba3 from B1 and second-lien debt to B3 from Caa1, assigned a Ba3 rating to the company’s proposed $1.6 billion first-lien term loan and assigned a B3 rating to its proposed $860 million second-lien notes. This concludes the review for upgrade that began March 16, and the outlook is positive.

The proceeds of the financing are expected to be used to fund the $1.4 billion purchase price to acquire a controlling interest in in Foresight Energy LP and Foresight Energy GP LLP and to refinance $1 billion of the existing first-lien term loan.

The agency said the upgrade reflects the improvement in the company's credit profile following the successful integration of the Northern Appalachian mines acquired from Consol late in 2013, with the debt-to-EBITDA ratio, as adjusted, at 3.1 times as of Dec. 31. Factors supporting the rating are market leadership in Northern Appalachia, operational diversity, solid contract positions, low-cost longwall mines, low-cost barge and truck transportation to power plants served and good liquidity, Moody’s said.

The positive outlook reflects the expected improvement in the credit profile of the company if the Foresight acquisition is consummated as contemplated, as a result of an increased footprint across two well-positioned coal regions, better producer discipline in the Illinois Basin as a result of merging two key suppliers and the low-cost position of many of the combined company's mines, Moody’s said.

S&P cuts Seadrill to negative

Standard & Poor’s said it revised to negative from stable its outlook on Seadrill Partners LLC and its subsidiary, Seadrill Capricorn Holdings LLC.

At the same time, the agency said it affirmed its BB-/B corporate credit ratings.

According to S&P, the outlook revision reflects its view that funding needs in 2015 for debt maturities and new vessels at Seadrill Ltd. could have implications for Seadrill Partners, in which Seadrill Ltd. has material and strategic interests.

In its view, S&P said Seadrill Partners may pay increased distributions to its shareholders and Seadrill Ltd. could finance further sales to Seadrill Partners of an interest in one of its vessels (vessel drop downs) by increasing debt at Seadrill Partners.

The ratings on Seadrill Partners reflect its assessment of the company's business risk profile as "fair" and its financial risk profile as "significant."

S&P cuts Ausdrill

Standard & Poor’s said it lowered its corporate credit rating on Ausdrill Ltd. to B+, from BB-.

At the same time, the agency said it lowered the ratings on Ausdrill Finance Pty Ltd.'s $300 million of senior unsecured and subordinated notes to B+ from BB-. The recovery rating is 4L (30%-50%, lower half of the range).

S&P also lowered its issue ratings on Ausdrill Finance and Ausdrill International Pty Ltd.'s A$125 million secured syndicated bank loan to BB from BB+. The recovery rating on this bank loan is also affirmed at 1.

"The downgrades reflect its view that a prolonged weakness in commodity prices has reduced demand for Ausdrill's services and that the company is likely to continue to face challenging conditions in the mining services sector, with no immediate prospect of recovery," S&P credit analyst Minh Hoang said.

"It also reflects its expectations that Ausdrill will no longer maintain credit metrics in line with the previous BB- rating."

In the agency’s view, decreased overall demand, reduced business activity, and lower mining investment have reduced Ausdrill's operating margins and somewhat weakened Ausdrill's business risk profile.

S&P lowers Bankrate

Standard & Poor’s said it lowered its corporate credit rating on Bankrate Inc. to B+ from BB-.

All of its ratings on Bankrate remain on Creditwatch with negative implications, where the agency had placed them on Sept. 15, 2014, following the announced SEC and internal investigations into financial reporting relating to the company's 2012 financials.

"The downgrade reflects its reassessment of Bankrate's management and governance, which we revised to 'weak' from 'fair,' " credit analyst Jawad Hussain said.

When the SEC and internal investigations were announced in September, its initial expectation was for it to be resolved in a within three to six months and that the company would provide audited and revised financial statements during that time.

"The recent SEC filing indicating the company's inability to file its 2014 annual report suggests that the investigation will continue beyond both its initial estimate and the March 31, 2015, initial deadline outlined in the supplemental indenture to the senior notes," Hussain added.

The unreliability of Bankrate's financial statements dating back to 2011 creates uncertainty with respect to its financial metrics, the agency noted.

S&P lowers Ntelos

Standard & Poor's said that it lowered its corporate credit rating on Ntelos Holdings Corp. to B from B+ and removed the ratings from Creditwatch, where we had placed them with negative implications on Dec. 3.

The outlook is stable.

At the same time, the agency said it lowered its issue-level rating on Ntelos' senior secured term loan to B from B+. The recovery rating remains 4.

"The downgrade follows Ntelos' announcement that it will exit the eastern Virginia markets and focus on operations in western Virginia and West Virginia," said S&P credit analyst Eric Nietsch.

"Although we view the decision as moderately positive in the long-term, since the eastern markets have been intensely competitive, we believe the resultant transaction will push leverage above 5x over the next few years."

S&P ups Activision Blizzard to positive

Standard & Poor’s said it revised its outlook on Activision Blizzard Inc. to positive from stable.

At the same time, the agency said it affirmed its ratings on the company, including the BB+ corporate rating.

"The outlook revision is based on the company's strong operating results and good performance from several new titles (some of which are likely to be new franchise titles)," said S&P credit analyst Andy Liu.

Additionally, the company's financial policy has been fairly conservative: It applies a portion of its discretionary cash flow toward debt reduction in excess of scheduled amortization, S&P stated.

The BB+ corporate credit rating on Activision reflects its expectation for the company's operating performance to remain stable, the agency noted.

The outlook is positive.

S&P also said that it believes Activision's revenues will decline by a low-single-digit percentage in 2015 due to changes in its release slate and unfavorable currency movements.

S&P lifts Gulfport Energy to positive

Standard & Poor’s said it revised its outlook on Gulfport Energy Corp. to positive from stable.

At the same time, the agency said it affirmed its B corporate credit rating on the company.

The agency said it is also affirming the B senior unsecured debt rating. The recovery rating remains 4.

"The positive outlook reflects its assessment of Gulfport's recent success in increasing production and reserves in the Utica shale," said credit analyst Stephen Scovotti.

"If Gulfport can continue to increase production and reserves and meet its public production guidance, the agency said it could raise the rating over the next 12 months."

The ratings on Gulfport continue to reflect its geographic concentration in the Utica shale, its falling short of public production forecasts in 2013 and 2014 and its aggressive capital spending over the past few years, which the agency said it expects to continue at more moderate level.

S&P ups Allison Transmission

Standard & Poor's said it raised its corporate credit rating on Allison Transmission Inc. to BB from BB-. The outlook is stable.

At the same time, the agency said it assigned its BB+ issue-level rating to the company's proposed $470 million senior secured term loan and 2 recovery rating.

The agency noted that it also revised its recovery rating on the company's existing senior secured credit facilities to 2 from 1. The issue-level ratings on the senior secured credit facilities remain BB+.

S&P also raised the rating on the company's senior unsecured notes to BB- from B+. The recovery rating remains 5.

"The upgrade reflects the improvement in Allison's credit metrics and its expectation that they will remain appropriate for the rating, despite its expectation of flat-to-slightly negative sales growth in 2015," credit analyst Robyn Shapiro stated.

Fitch upgrades Jerrold

Fitch Ratings said it upgraded Jerrold Holdings Ltd.'s long-term issuer default rating to BB- from B+ and the senior notes issued by Jerrold FinCo and guaranteed by Jerrold to BB- from B+. The outlook is stable.

The agency said the upgrade takes into account the group's improved access to a more diversified investor base for its debt, which has enabled it to grow, improve the quality of its receivables book and increase its profitability.

Jerrold's ratings reflect the significant risks arising from its relatively undiversified business model, which relies on limited funding sources, Fitch said.

The ratings benefit from the company's modest gearing, strong capital generation and adequate risk management, the agency said.

S&P: Go Daddy on positive watch

Standard & Poor's said that it placed all of its ratings on Go Daddy Operating Co. LLC, including the B corporate credit rating, on Creditwatch with positive implications.

The Creditwatch placement follows Go Daddy's announcement that it plans to raise at least $396 million through an IPO.

From the proceeds, the company will use $315 million to repay existing senior notes, $26 million to pay its private equity sponsors for terminating the transaction and monitoring fee agreement, about $33 million to pay transaction-related expenses.

"We believe that the company's financial policy, cash flow generation and debt leverage will likely improve with the IPO," said S&P credit analyst Elton Cerda.

S&P: Isolux on watch

Standard & Poor's said that it has placed its B long-term corporate credit rating on Isolux Corsan SA on Creditwatch with negative implications.

At the same time, the agency said it affirmed its B short-term corporate credit rating on the company.

Also, the agency said it has placed the B issue rating on Isolux's €850 million of senior secured notes on Creditwatch negative. The recovery rating on these notes is unchanged at 4.

S&P said that the Creditwatch placement reflects its view that Isolux's liquidity position has weakened. This takes into account Isolux's very limited headroom under its financial covenants at year-end 2014 and its forecast of higher cash needs than cash sources over the coming 12 months. its view also reflects weaker performance in 2014 than we previously assumed, resulting in lower credit ratios.

Moody’s changes Telesat view to negative

Moody's Investors Service said it changed Telesat Canada's outlook to negative from developing and affirmed its corporate family rating at B1, probability of default rating at B1-PD, senior secured credit facility at Ba3 (LGD3) and senior unsecured bonds at B3 (LGD5) and lowered the speculative grade liquidity rating to SGL-2 from SGL-1.

The agency said the rating action was prompted by Loral Space & Communications Inc.'s disclosure that discussions between Loral and the high bidder in the previously disclosed 2014 strategic review process have concluded without an agreement being reached. Loral holds a 63% economic interest and a 33% voting interest in Telesat. Loral noted that the two shareholders are exploring "other potential strategic initiatives, including paying a dividend to Telesat shareholders, of which [Loral] would use [its] portion to pay a dividend to [its] stockholders, as well as a combination of Telesat and Loral into a new public company."

The outlook reflects the heightened potential of a dividend recapitalization transaction in which leverage materially increases, Moody’s said.

S&P: Portugal up to positive

Standard & Poor’s said it revised its outlook on the Republic of Portugal to positive from stable.

At the same time, the agency said it affirmed the unsolicited long- and short-term foreign and local currency sovereign credit ratings on Portugal at BB/B.

The outlook revision reflects its view of the gradual recovery of Portugal's real and nominal growth prospects, alongside policymakers' commitment to consolidating public finances over the medium term, the agency noted.

Moody's rates Foresight loan Ba3

Moody's Investors Service said it assigned a Ba3 (LGD2) rating to Foresight Energy LLC’s proposed $650 million first-lien term loan and affirmed its corporate family rating at B2, probability of default rating at B2-PD, senior secured credit facilities at Ba3 (LGD2) and senior unsecured notes at Caa1 (LGD5). The speculative grade liquidity rating is unchanged at SGL-2. This concludes the review for upgrade that began March 16, and the outlook is positive.

The proceeds of the financing are expected to refinance the existing secured debt of Foresight upon the change of control following the proposed acquisition of Foresight's parent by Murray Energy Corp.

The agency said the B2 corporate family rating reflects the company’s position as one of the lowest cost producers in the Illinois Basin, ample reserves, multiple transportation options and access to export markets, the effective execution of its expansion plans and Moody’s expectations that Foresight will maintain leverage at around 4 times or below over the rating horizon and that capex will be largely limited to maintenance levels over the next two to three years.

The B2 corporate family also reflects uncertainties as to future financial policies under the master limited partnership structure as the company attempts to manage its future investment needs, target dividend payouts and leverage ratios, Moody’s said.

The positive outlook reflects the expected improvement in the company’s credit profile as a result of synergies achieved in the proposed business combination.

S&P rates Lufthansa hybrid BB

Standard & Poor’s said it assigned its BB long-term issue rating to the proposed long-dated, optionally deferrable and subordinated hybrid capital securities to be issued by Deutsche Lufthansa AG (BBB-/stable/A-3).

Under this transaction, Lufthansa plans to issue euro-denominated hybrid instruments. The

amount remains subject to market conditions.

The agency said it considers the proposed securities to have "intermediate" equity content until their respective first call dates because they meet its criteria in terms of subordination, permanence and deferability at the company's discretion during this period.

S&P said it arrived at its BB issue rating on the proposed securities by notching down from its BBB- corporate credit rating.

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