Moody's lowers Pitney Bowes

Moody's Investors Service said it downgraded Pitney Bowes Inc.'s senior unsecured debt ratings to Ba1 from Baa3 and changed the outlook to stable from negative.

The agency also said it assigned a Ba1 corporate family rating to Pitney Bowes, along with a Ba1-PD probability of default rating and SGL-1 speculative grade liquidity rating.

The downgrades follow news that the company will acquire Newgistics for total consideration of $475 million to be funded with debt, Moody's said.

The downgrades reflect a view that the incremental debt will further strain an already weakened credit profile, the agency said.

The downgrades also consider that the company will not have sufficient financial flexibility to maintain an investment-grade rating while it navigates through the secular and macro pressures facing its core mail meter business, Moody's said.

Moody’s ups Yorkshire Building debt

Moody's Investors Service said it upgraded the long-term local and foreign currency senior unsecured debt ratings of Yorkshire Building Society to A3 from Baa1.

The senior unsecured medium-term note rating was also upgraded to provisional A3 from provisional Baa1. All other ratings and its counterparty risk assessment were affirmed. YBS's baseline credit assessment (BCA) and adjusted BCA was unaffected.

The outlook on the long-term senior unsecured debt was changed to stable from positive, while the outlook on the long-term deposit rating remains stable.

Moody’s said the upgrade of the long-term senior unsecured debt ratings to A3 reflects the increased subordination protecting Yorkshire Building’s senior bondholders following the building society's £300 million Tier 2 debt issuance priced on Sept. 6, resulting in a one-notch uplift from the BCA of baa1 under Moody's advanced Loss Given Failure (LGF) analysis.

The Tier 2 issuance is part of Yorkshire Building’s funding plan aimed at compliance with the society's future Minimum Required Eligible Liabilities.

Moody’s rates Discovery loans Baa3

Moody's Investors Service said it assigned a Baa3 rating to Discovery Communications, LLC's (DCL) issuance of $2 billion in new unsecured term loans.

There are two tranches in equal amounts of $1 billion with maturities of three years, due 2020, and five years, due 2022.

Discovery plans to use the proceeds to fund part of its planned purchase of Scripps Networks Interactive, Inc. (Baa3 stable), scheduled to close in early 2018.

In conjunction with the new term loans, the company also refinanced its unrated revolving credit facility, increasing the commitment to $2.5 billion from $2 billion. The maturity date was extended to August 2022. The credit facility is absolutely and unconditionally guaranteed by Discovery’s parent, Discovery Communications, Inc. Scripps Networks will become a guarantor within 30 days of the closing by signing a joinder agreement, as required by the credit agreement.

The company's Baa3 senior unsecured rating and P-3 commercial paper rating are unchanged.

The outlook is stable.

“The Baa3 senior unsecured rating on Discovery Communications, LLC's (Discovery or DCL) reflects its valuable portfolio of global branded content in sports, entertainment, and children's programming,” Moody’s said in a news release.

Moody’s gives Baa3 to Discovery notes

Moody's Investors Service said it assigned a Baa3 rating to Discovery Communications, LLC's issuance of $6.8 billion in new senior unsecured notes.

Proceeds will be used to fund part of the company’s planned purchase of Scripps Networks Interactive, Inc. (Baa3 stable), scheduled to close in early 2018.

The notes are tranched in floating-rate notes due 2019, non-dollar-denominated notes due between 2024 and 2032, and medium- and long-term notes due between 2023 and 2057.

The notes will be fully and unconditionally guaranteed by Discovery Communications, Inc. (DCI), Discovery’s ultimate parent, and all of DCI's future domestic subsidiaries that guarantee the term loans.

The company's Baa3 senior unsecured rating, P-3 commercial paper rating and stable outlook are unchanged.

Fitch gives BBB- to Discovery notes

Fitch Ratings said it assigned a BBB- rating to Discovery Communications, LLC's issuance of a series of senior notes having multiple maturities.

The outlook remains stable.

Proceeds are to be used to fund a portion of the company's $14.8 billion acquisition of Scripps Networks Interactive, Inc., announced July 31, and for related fees and expenses.

Fitch said it continues to view the Scripps acquisition positively.

“The combined suite of programming presents a unique opportunity for advertisers given that they represent 20% of all ad-supported linear U.S. aggregate television and prime time female viewership and five of the top 25 female skewing cable networks,” the agency said in a news release.

“In addition, the merger should provide significant cost synergies, which the company estimates totaling approximately $350 million. The company may realize revenue synergies but does not include any in their assumptions, in line with the company's estimates.”

S&P gives BBB- to Discovery Communications notes

S&P said it assigned its BBB- issue-level rating to Discovery Communications LLC's proposed senior unsecured debt securities.

The company plans to split the benchmark-sized offering into tranches ranging from two years to 40 years, and it will use the proceeds to fund its acquisition of Scripps Networks Interactive Inc.

Discovery's parent, Discovery Communications Inc., provides an unconditional guarantee for the notes, as it does for the company's other public debt.

The BBB-/A-3 corporate credit ratings and negative outlook on Discovery remain.

“The ratings reflect the combined company's increased portfolio of key domestic and international cable networks; its significant international scale (36% of pro forma revenue) and the opportunity it has to leverage that scale to accelerate international distribution of Scripps networks; and its above-average domestic EBITDA margins compared with those of its peers due to its focus on lower cost unscripted programming,” the agency said in a news release.

S&P rates Royal FrieslandCampina BBB+

S&P said it assigned BBB+ long-term and A-2 short-term corporate credit ratings to Koninklijke FrieslandCampina NV (Royal FrieslandCampina).

The outlook is stable.

In terms of revenues, Royal FrieslandCampina is the fifth-largest global dairy group and ranks No.3 in the global dairy cooperative industry.

This value-creation proposition for its farmers is one of the group's key strengths, which underpins a business risk profile assessment, S&P said.

Like other agricultural cooperatives, Royal FrieslandCampina is vertically integrated and engaged to buy all the raw materials produced by its member farmers, the agency said.

The group provides its members with better returns than peers thanks to its milk valorization model, which includes both the processing of large quantities of milk and maximizing of its value creation products, S&P said.

S&P rates Sumitomo bonds A-

S&P said it assigned an A- rating to Sumitomo Corp.'s dollar-denominated unsecured straight bonds.

The $500 million bonds have a fixed-coupon rate of 2.5% and are due Sept. 13, 2022.

The rating on the bonds is the same as the long-term corporate credit rating on Sumitomo, the agency said.

This is due to the asset protection for the bonds, S&P said, and the seniority of the bonds' payment among its financial obligations.

The ratings reflect the company's diversified portfolio and strong trading and investment businesses, the agency said.

The negative outlook reflects a view that its profitability might recover more slowly than assumed, given the risk of additional impairment losses from large resource investments, S&P said.

S&P rates Vantiv notes BB

S&P said it affirmed the BB+ corporate credit rating on Vantiv LLC and removed all of the ratings from CreditWatch negative.

The outlook is negative.

S&P also said it affirmed the BBB- rating and 2 recovery rating on the company's first-lien credit facility and assigned the same ratings to company's proposed incremental first-lien credit facility.

The 2 recovery rating indicates 70% to 90% expected default recovery.

S&P also said it assigned a BB rating and 5 recovery rating to the company's proposed senior unsecured notes. The 5 recovery rating indicates 10% to 30% expected default recovery.

The negative outlook reflects Vantiv's substantial increase in leverage pro forma for two debt raises associated with its acquisition of Worldpay, the agency said.

Vantiv is raising $3.27 billion of senior secured and unsecured debt to fund the cash portion of the purchase price and refinance existing Worldpay debt, S&P said.

The agency said it expects the acquisition to close in the first quarter of 2018.

Moody’s: Ba1 to Bank of Ireland debt

Moody's Investors Service said it assigned a provisional Ba1 long-term subordinate debt rating to Bank of Ireland Group plc (BOI Group, issuer rating Baa3 positive), the holding company of Bank of Ireland (BOI, rated long-term bank deposits A3/senior unsecured Baa1 positive, BCA baa3).

The subordinate debt rating is based on the consolidated Loss Given Failure (LGF) analysis of the group, including the main operating company, Bank of Ireland.

“According to Moody's Banks Methodology, in countries subject to the EU's Bank Recovery and Resolution Directive (BRRD), such as Ireland, which we consider an Operational Resolution Regime, it is assumed that if a holding company forms part of the same resolution perimeter as the bank, as is the case of the BOI Group, holding company subordinate obligations rank below the holding company's senior unsecured obligations, in this case rated at (P) Baa3, and pari passu with the operating company's subordinate obligations, rated at Ba1,” Moody’s said in a news release.

“This is because Ireland's implementation of EU's BRRD mandates write-down and conversion for bank-issued capital instruments as the initial source of loss-absorbing capital.”

Moody’s gives Baa1 to Sumitomo bonds

Moody's Japan K. K. said it assigned a Baa1 rating to Sumitomo Corp.’s new $500 million senior unsecured bonds due 2022.

The outlook is negative.

The bonds rank pari passu with all other senior unsecured obligations of Sumitomo.

Moody’s said the Baa1 issuer rating incorporates Sumitomo's: (a) Sustainable business franchise, in particular its non-resource business; (b) well-diversified business portfolio; and (c) continued strong ability to obtain funding.

Moody’s: Bank of Nova Scotia Australia program A1

Moody's Investors Service said it assigned a provisional A1 rating to Bank of Nova Scotia Australia Branch's medium-term note program.

The rating matches Bank of Nova Scotia’s senior unsecured medium-term note rating. Bank of Nova Scotia Australia Branch forms part of the same legal entity as Bank of Nova Scotia and in the absence of a different deposit or debt ceiling, is assigned the same rating as the bank, Moody’s explained.

The outlook is negative.

Fitch: Hydro-Quebec notes AA-

Fitch Ratings said it assigned an AA- rating to Hydro-Quebec's additional C$500 million in debentures series JQ.

The debentures have a 4% coupon and are due Feb. 15, 2055.

This tranche of series JQ debentures is in addition to the C$500 million presently outstanding, Fitch said.

The debt is part of the company's borrowing program for 2017.

The proceeds will be used to pay for a portion of its capital program, refinance a portion of outstanding debt and fund general corporate purposes, the agency said.

The agency also said it affirmed the company's long-term issuer default rating at AA- and C$45.6 billion parity unsecured debentures and medium-term notes at AA-.

The outlook is stable.

The company's foremost rating driver is the irrevocable and unconditional payment guarantee of Hydro-Quebec debt provided by the province, Fitch said.

The guarantee ranks equally in right of payment with all other unsecured obligations of Quebec province, the agency added.

Moody’s: Teachers Mutual Bank debt Baa3

Moody's Investors Service said it assigned a subordinated debt rating of provisional Baa3 to Teachers Mutual Bank Ltd.’s (Baa1 stable) A$500 million debt issuance program.

This rating is in addition to the long-term senior unsecured debt rating of provisional Baa1 Moody's assigned to this program in June 2017.

At the same time, the agency assigned a Baa3 (hyb) rating to the proposed A$20 million subordinated notes, maturing on Sept. 7 2027, under this program.

The subordinated notes will qualify as Tier 2 capital under the prudential standards set out by the Australian Prudential Regulation Authority (APRA) and be subject to write-off at the point of non-viability.

Moody's said it rated the notes two notches below the bank's adjusted baseline credit assessment (BCA) of baa1, guided by its standard notching approach for subordinated securities with loss trigger at the point of non-viability on a contractual basis.

Moody's lifts Kennametal view to stable

Moody's Investors Service said it affirmed Kennametal Inc.'s $400 million 2.65% senior unsecured notes due 2019 at Baa3 and its $300 million 3.875% senior unsecured notes due 2022 at Baa3.

The agency also said it revised the outlook to stable from negative.

The outlook revision reflects improvement in the company's operating performance, which has resulted in lower debt leverage and higher margin.

The stable outlook also considers an expectation that key credit metrics will improve as earnings increase in the fiscal year 2018 and fiscal year 2019, Moody's said.

The ratings are supported by the company's position as a leading global supplier of tooling and engineered components, broad product, end market and geographic diversity, the agency said.

The ratings also consider its conservative financial policies and focus on debt reduction, Moody's said.

DBRS confirms Finning International

DBRS said it confirmed the issuer rating and the senior debentures and medium-term notes rating of Finning International Inc. at BBB (high) and the commercial paper rating at R-2 (high). All trends remain stable.

The agency said the confirmation reflects that Finning has performed broadly in line with expectations with improved operating results in the first half of 2017.

DBRS said the improving trend appears to be gathering momentum, with the company raising its revenue guidance for 2017 from flat to modestly over 5%. The agency said it expects the key metrics to continue to strengthen and the ratings to remain stable in the near- to medium-term.

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