S&P downgrades Areva

Standard & Poor’s said it lowered to BB+ from BBB- the long-term issue rating on the unsecured bonds and €1.25 billion revolving credit facility issued by Areva.

The agency also said it assigned a recovery rating of 3 to the bonds and the revolver, reflecting 50% to 70% expected default recovery.

The BB+ rating is in line with the corporate credit rating on Areva, S&P said.

The bonds and the revolver are unsecured and rank pari passu in a recovery analysis, along with other unsecured bilateral credit lines, the agency said.

S&P said it values the business as a going concern based on its market position.

At the same time, the agency said it believes that the value of the company’s assets provides insight into its likely value at the point of default.

S&P upgrades Autoroutes Paris-Rhin

Standard & Poor’s said it raised the long-term corporate credit rating on Autoroutes Paris-Rhin-Rhone SA to BBB+ from BBB and affirmed its A-2 short–term corporate credit rating.

The outlook is stable.

The agency also said it raised the ratings on Autoroutes Paris-Rhin-Rhone’s senior unsecured debt to BBB+ from BBB.

The upgrade reflects a view that the company’s financial measures will be supportive of a significant financial risk profile, S&P said.

Despite difficult economic conditions in France, the agency said it expects the company to benefit from a modest traffic-volumes growth.

Combined with Autoroutes Paris-Rhin-Rhone’s tariff increase and its efficient cost management, the agency said it expects fairly resilient earnings.

Fitch upgrades Brixmor

Fitch Ratings said it upgraded Brixmor LLC’s issuer default rating to BBB- from BB+ and its senior unsecured notes to BBB- from BB+.

The agency also said it revised the company’s outlook to stable from positive.

The upgrades reflect the improved financial profile of Brixmor’s indirect parent company, Brixmor Property Group, Inc., including reduced leverage, stronger fixed-charge coverage and growth in its unencumbered asset portfolio, Fitch said.

The stable outlook also reflects an expectation that the company’s financial profile will continue to improve, but remain appropriate for a BBB- rating in the next two- to three-years, the agency said.

S&P lifts Dai-ichi Life

Standard & Poor’s said it raised to A+ from A the insurer financial strength and long-term counterparty ratings on the Dai-ichi Life Insurance Co. Ltd.

The ratings also were removed from CreditWatch positive.

The outlook is stable.

S&P also said it raised to A- from BBB+ the ratings on Dai-ichi Life’s subordinated debt and removed them from CreditWatch positive.

The ratings were placed on positive watch in June following news of the company’s plan to acquire Protective Life Corp., the agency said.

The upgrade mainly reflects improved prospects for the company’s capital and earnings, S&P said. Its capital is expected to remain at slightly below the A level in the next two years based on a risk-based capital model.

The agency also said it recognized that Dai-ichi Life has strengthened its fundamental earnings ability through its efforts to eliminate negative spread, reduce internal expenses, control market risks and diversify its business.

S&P upgrades Delphi Automotive

Standard & Poor’s said it raised the corporate credit rating on Delphi Automotive plc to BBB from BBB-.

The outlook is stable.

The agency also said it raised the rating on Delphi Corp.’s senior secured and senior unsecured debt to BBB from BBB-.

The ratings reflect a view that the company can sustain its profitability in the mid-double-digit EBITDA margin range because of its business focus on products with growth potential and its proven cost discipline, S&P said.

The ratings also consider Delphi’s participation in the volatile and competitive global auto supplier industry, the agency said.

Fitch upgrades GEA

Fitch Ratings said it upgraded GEA Group AG’s long-term issuer default rating and senior unsecured rating to BBB from BBB-.

The short-term issuer default rating also was upgraded to F2 from F3.

The outlook is stable.

The upgrade reflects GEA’s improved business and financial profile, the agency said.

Since 2009, the group has increased its exposure to stable food and beverage markets to 72% of revenues from 43% in 2009 and to stable aftermarket services to 27% from 18%, Fitch said.

The company also reduced its concentration in Western Europe and grown its profitability and cash-flow generation capacity through active working capital management, the agency said.

Moody’s revises Orient to stable

Moody's Japan K.K. said it changed the outlook on the rating of Orient Corp. to stable from negative.

Orient's Baa3 long-term issuer rating (domestic currency) was affirmed.

Moody’s said the outlook change reflects its view that Orient's intrinsic financial strength – which is backed by its close linkage to Mizuho Bank (A1/baa1/stable) – will not materially weaken, despite elevated level of refund payments for overpaid interest.

S&P rates Kinder Morgan A-3

Standard & Poor’s said it assigned an A-3 short-term corporate credit rating to Kinder Morgan Inc., along with an A-3 short-term rating to its $4 billion commercial-paper program.

The company’s corporate credit rating is BBB- and the outlook is stable.

The company will use the program for working capital requirements and other general corporate purposes, S&P said.

Kinder Morgan’s $4 billion revolving credit facility, which expires in September 2019, fully backstops the program,, the agency said.

The stable outlook reflects an expectation that financial leverage will be slightly above 5.5x through 2017 as the company finances and executes a large organic-spending program, the agency said.

DBRS rates Metro notes BBB

DBRS said it assigned a provisional rating of BBB with a stable trend to Metro Inc.’s proposed series C notes and series D notes issuance expected to total about C$500 million announced Nov. 26.

The senior unsecured debt issuance includes a tranche of about C$250 million series C notes due Dec. 1, 2021 and a tranche of about C$250 million series D notes due Dec. 1, 2044.

The notes will be direct unsecured obligations of the company and will rank equally and pari passu with all other existing and future unsecured unsubordinated indebtedness of Metro, the agency said.

The proceeds will be used for working capital and other general corporate purposes, DBRS said.

S&P rates Volvo notes BB+

Standard & Poor’s said it assigned a BB+ long-term issue rating to the subordinated hybrid notes to be issued by AB Volvo through its subsidiary, Volvo Treasury AB.

The proceeds will be used to guarantee the proposed notes, which are in two tranches, one non-callable for 5.5 years and the other non-callable for 8.25 years, the agency said.

Volvo has the option to defer interest payments, S&P said.

The size of the transaction will be subject to market conditions and the proceeds will be used for general corporate purposes, the agency said.

The ratings reflect a notching down from the company’s BBB long-term rating due to its investment-grade category and the optional deferral of interest, S&P said.

There is a relatively low likelihood that Volvo will defer interest payments on the proposed notes, however, the agency added.

S&P affirms Aviva on merger news

Standard & Poor’s said it affirmed the A+ long-term counterparty credit and financial strength ratings on the core operating entities across the Aviva group, including the A- long-term counterparty credit rating on the holding company, Aviva plc.

The outlook on all core operating entities and the holding company is stable.

On Nov. 21, Aviva and Friends Life Group announced that discussions about the possible all-share combination of the two groups were at an advanced stage, S&P said.

Although there is no certainty that Aviva will make a formal offer, the agency said it believes the confirmation by Friends Life’s board further increases the likelihood of a formal offer.

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