Fitch puts Mohawk on watch

Fitch Ratings said it placed Mohawk Industries, Inc.’s long-term issuer default rating as well as Mohawk Industries’ and Mohawk Capital Finance SA’s senior unsecured notes and revolving credit facility on rating watch negative.

“The actions follow the lawsuit filed on behalf of the Public Employees’ Retirement System of Mississippi, claiming that Mohawk engaged in fraudulent schemes to misrepresent its financials from April 2017 to July 2019. If the allegations have merit, Fitch believes it would raise concerns around management’s credibility and its oversight over internal controls, which would likely result in a negative rating action,” Fitch said in a press release.

Moody’s assigns A1 to Mars notes

Moody’s Investors Service said it assigned A1 ratings to Mars, Inc.’s $2.5 billion new senior unsecured notes in multiple tranches.

The proceeds will be used for general corporate purposes, including repayment of other debt.

Mars’ other ratings, including the A1 senior unsecured ratings, remain unchanged.

The outlook remains stable.

S&P gives Mars notes A

S&P said it assigned its A rating to Mars Inc.’s proposed senior unsecured notes.

The company plans to use the proceeds to repay borrowings under its multicurrency revolving credit facility and/or its term loans.

“We view this transaction as net leverage neutral,” S&P said in a press release.

All of S&P’s ratings on the company are unchanged, the agency said.

S&P cuts two AMP entities

S&P said it lowered the ratings on AMP Ltd. and AMP Group Holdings Ltd. to BBB from BBB+, the group’s ultimate and intermediate non-operating holding companies, respectively.

Further, the agency lowered the long-term issue ratings on debt issued by AMP Ltd. and AMP Group Finance Services Ltd. and guaranteed by AMP Group Holdings.

“We lowered the ratings on AMP Ltd. and AGHL to reflect our view that the overall creditworthiness of the remaining AMP group is weaker following the divestment of AMP Life,” S&P said in a press release.

S&P also affirmed the BBB+ ratings on AMP Bank Ltd. and its debt.

S&P puts Analog Devices on positive watch

S&P said it placed all its ratings for Analog Devices Inc. on CreditWatch with positive implications after the company announced a pact to acquire Maxim Integrated Products Inc. in an all-stock transaction.

“We expect Analog Devices will maintain S&P Global Ratings-adjusted net leverage of about 1.5x, after assuming Maxim’s existing debt and a one-time post-close return of excess cash to shareholders, down from 2.3x as of April 2020,” S&P said in a press release.

The agency said it sees the acquisition improving the firm’s scale and position in analog semiconductor markets, reducing leverage to modest levels and bolstering free cash generation.

S&P puts Maxim Integrated on positive watch

S&P said it placed its ratings for Maxim Integrated Products Inc. on CreditWatch with positive implications following the announcement Analog Devices Inc. plans to acquire the company.

“The CreditWatch placement reflects our expectation that Maxim Integrated will merge into Analog Devices, which will provide a potential upside for our BBB+ issuer credit rating on Maxim Integrated. We intend to resolve the CreditWatch positive placement upon the close of the acquisition,” S&P said in a press release.

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