S&P puts Citycon on positive watch

Standard & Poor's said it placed its BBB- long-term and A-3 short-term corporate credit ratings on Citycon Oyj. on CreditWatch with positive implications.

The CreditWatch placement follows Citycon's announcement of its proposed directed share issue of roughly €200 million and proposed rights issue of about €200 million.

The agency believes that the transaction should result in significantly quicker deleveraging than it previously anticipated.

Proceeds are estimated to go toward reducing Citycon's debt by about €300 million thereby significantly decreasing financial expenses going forward.

Consequently, S&P forecasts that the EBITDA-to-interest ratio will likely rise to between 2.5x and 3.0x and the ratio of debt to debt and equity ratio could decrease below 50% over the three months following the transaction. S&P said it would view these ratio levels as commensurate with an "intermediate" financial risk profile and a higher rating.

S&P upgrades Ireland to A-

Standard & Poor's said it raised the long-term foreign and local currency sovereign credit ratings on the Republic of Ireland to A- from BBB+.

The short-term ratings were affirmed at A-2.

The outlook is positive.

S&P said the upgrade reflects its view of the brightening prospects for Ireland's domestic economy, which the agency expects to underpin further improvements in the government's financial profile, capital markets access and financial system asset quality.

Moody’s revises PostNL to stable

Moody's Investors Service said it changed the outlook on PostNL NV’s Baa3 long-term issuer rating and senior unsecured instrument ratings to stable from negative following progress the company has made with the planned restructuring of its operations and projected cost savings.

Concurrently, the agency affirmed these ratings.

Moody’s said the outlook stabilization reflects PostNL's success thus far in restructuring its operations, as well as the expectations that the company will achieve the cost savings required to offset lower revenues on the back of declining domestic mail volumes.

PostNL has also returned to positive free cash flow generation in 2013 and the first quarter of 2014, which Moody's expects will contribute towards better credit metrics in the next 12 months.

In addition, part of the proceeds from the sale of half its stake in TNT Express NV (Baa2 negative) was used to repay debt and reduce leverage in December 2013.

DBRS rates Hydro One notes A

DBRS said it has assigned a rating of A (high) with a stable trend to Hydro One Inc.’s issuance of C$350 million 4.17% medium-term notes, series 32, maturing June 6, 2044.

The agency said that the notes will rank pari passu with all other unsecured and unsubordinated indebtedness of Hydro One. Proceeds from the issue will be used for general corporate purposes.

Moody’s rates Seadrill loan Ba3, notes Baa3

Moody's Investors Service said it affirmed Seadrill Partners LLC's (SDLP) corporate family rating at Ba3 and probability of default rating at Ba3-PD.

The agency also assigned a Ba3 definitive rating to the $1.8 billion senior secured term loan due 2021, borrowed by Seadrill Operating LP and Seadrill Partners Finco LLC, subsidiaries of SDLP, which the company is seeking to increase with a $1 billion add-on. It also assigned a Baa3 rating to the $100 million first out secured revolving credit facility due 2019, borrowed by Seadrill Operating LP, Seadrill Partners Finco LLC and Seadrill Capricorn Holdings LLC, also a subsidiary of SDLP.

The outlooks remain stable.

Moody’s said these actions follow the company's very weak operating performance in the first quarter 2014 and also the proposed $1 billion term loan to refinance existing debt facilities relating to the purchases of the West Capricorn and West Auriga vessels. The $1 billion term loan will be structured as an add-on to the existing $1.8 billion senior secured term loan due 2021.

DBRS gives AltaLink notes A

DBRS said it has assigned a rating of A to AltaLink, LP’s issuances of C$350 million of series 2014-1 medium-term notes due June 6, 2024 and C$130 million of series 2014-2 medium-term notes maturing June 6, 2064.

The rating is currently under review with developing implications.

The agency said that the notes were issued under AltaLink’s C$2.5 billion short form base shelf prospectus dated Nov. 9, 2012.

The proceeds will be used for repayment of short-term indebtedness and for general corporate purposes.

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