Moody’s lowers Teck to Baa3

Moody's Investors Service said it downgraded Teck Resources Ltd.’s senior unsecured ratings to Baa3 from Baa2 and changed the outlook to stable from negative.

"We downgraded Teck's rating to Baa3 because the company's leverage is high, its free cash flow is materially negative, and we expect continuing weakness in commodity prices will limit Teck's ability to improve its financial metrics through 2016," Moody's vice president and senior credit officer Darren Kirk said in a news release.

Fitch lifts Healthcare Realty

Fitch Ratings said it upgraded Healthcare Realty Trust’s issuer default rating to BBB from BBB-, unsecured line of credit to BBB from BBB-, senior unsecured term loan to BBB from BBB- and senior unsecured notes to BBB from BBB-.

The outlook is stable.

The upgrades reflect the material improvement in leverage and fixed-charge coverage and a view of the durability of the operating cash flows for medical office buildings, Fitch said.

The ratings are tempered by weak contingent liquidity and a persistently high dividend payout ratio, which impedes cash retention, the agency said.

Moody’s ups Mohawk Industries to Baa2

Moody's Investors Service said it upgraded Mohawk Industries, Inc.'s senior unsecured rating to Baa2 from Baa3 reflecting its expectation that Mohawk's operating performance, credit metrics and credit profile will improve and that a strong credit profile will be sustained in a reasonable economic downturn.

The outlook is stable.

"We expect Mohawk's operating performance to improve as it expands its international footprint," Moody’s senior credit officer Kevin Cassidy said in a news release.

Pro forma financial leverage will be relatively high due to two pending acquisitions that are expected to close in the second quarter of 2015. However Moody's expects leverage to come down steadily as the U.S. economy and housing market recover, albeit at an uneven pace, and the company repays debt with free cash flow.

Mohawk will benefit from the continued release of pent-up demand by middle-income consumers, which the agency thinks will accelerate when there is a broader recovery in the housing market.

Moody’s rates Abbott Labs notes A2

Moody's Investors Service said it assigned an A2 rating to Abbott Laboratories' new senior unsecured note offering and a provisional A2 to its senior unsecured shelf registration.

There is no change to Abbott's existing A2 long-term or Prime-1 short-term ratings.

The outlook is stable.

Moody’s said the A2 rating reflects Abbott's position as one of the largest and well-diversified medical products companies. The company will maintain good market positioning in its product segments, including its remaining emerging markets branded generics business, the agency said.

S&P rates Abbott notes A+

Standard & Poor’s said it assigned an A+ senior unsecured issue-level rating to Abbott Laboratories’ proposed unsecured notes offering, issued in various tranches.

The company will use proceeds of the offering to refinance short-term debt.

The transaction is regarded by the agency as leverage neutral.

The company’s A+ corporate credit rating reflects its satisfactory business risk profile assessment, reflecting the company’s well-established positions in a diverse number of health care and consumer-product businesses, S&P said.

S&P rates Bank of Tokyo-Mitsubishi bonds A+

Standard & Poor’s said it assigned an A+ rating to Bank of Tokyo-Mitsubishi UFJ Ltd.’s €750 million 0.875% straight bonds due March 11, 2022.

The ratings on the bonds are the same as the long-term counterparty rating on the bank given the current rating on the bank and the issuance terms and conditions of the bonds, S&P said.

Moody’s rates Berkshire Hathaway notes Aa2

Moody's Investors Service said it assigned Aa2 ratings to three tranches of senior unsecured notes being issued by Berkshire Hathaway Inc. (long-term issuer rating Aa2, short-term issuer rating Prime-1).

Berkshire is issuing a total of €3 billion off its multi-purpose shelf registration.

The outlook is stable.

Net proceeds will be used to replace the company's $1.7 billion of senior notes that matured in February 2015 and for general corporate purposes.

Moody's said the ratings reflect Berkshire's strong market presence in its principal (re)insurance operations, the diversification of its earnings from both regulated and non-regulated businesses and its sound balance sheet. The ratings also incorporate the conservative operating and financial principles of the current management team, the agency said.

S&P rates Berkshire Hathaway bonds AA

Standard & Poor’s said it assigned an AA debt rating to Berkshire Hathaway Inc.’s new issue of €3.0 billion senior unsecured notes to be issued in three tranches.

The proceeds will be used to replace the company’s $1.7 billion aggregate principal amount of 3.2% senior notes that matured Feb. 11, S&P said.

The company will use the remaining proceeds for general corporate purposes, the agency said.

The company’s adjusted financial leverage and fixed-charge coverage are conservative, S&P said.

S&P rates Fossil loan BBB-

Standard & Poor’s said it assigned a BBB- corporate credit rating to Fossil Group Inc.

The agency also said it assigned a BBB- rating to the company’s $1.3 billion senior unsecured credit facility due 2018, comprised of a $1.05 billion revolver and a $231.3 million term loan.

The outlook is stable.

The company plans to launch an amendment on its senior unsecured credit facility, removing sub-guarantees and amending certain negative covenants, S&P said.

The ratings reflect the company’s good market position in the highly competitive global watch industry, portfolio of well-recognized brands and growing geographic diversity, the agency said.

The company’s credit metrics are viewed as strong, S&P said.

The company will continue to seek growth outside of the United States, where much of the global watch industry growth is driven, the agency said.

Fitch rates Intermediate Capital bond BBB-

Fitch Ratings said it assigned an expected rating of BBB- to Intermediate Capital Group’s proposed bullet bond issue under its £500 million euro medium-term note program.

The notes issued under the program are expected to be rated in line with the company’s long-term issuer default rating of BBB-, reflecting their status as senior unsecured obligations.

The proposed notes will be guaranteed by Intermediate Capital Investments Ltd., Intermediate Capital Managers Ltd. and Intermediate Investments LLP, which together account for a material portion of group assets and earnings, Fitch said.

The ratings reflect the company’s strong franchise in leveraged finance and associated asset-management activities, the agency said.

The ratings also consider the inherent risk profile of the group’s asset portfolio and its links with wider market performance, Fitch said.

Fitch rates Marsh & McLennan notes BBB+

Fitch Ratings said it assigned a senior unsecured debt rating of BBB+ to Marsh & McLennan Cos, Inc.’s new issue of $500 million 2.35% senior notes due 2020.

The outlook is stable.

The company also has a long-term issuer default rating of BBB+, short-term issuer default rating of F2 and commercial-paper rating of F2, along with BBB+ ratings on its $250 million 2.30% senior debt due 2017, $250 million 2.55% senior debt due 2018, $300 million 2.35% senior debt due 2019, $500 million 4.80% senior notes due 2021, $250 million 4.05% senior debt due 2023, $600 million 3.5% senior notes due 2024, $500 million 3.5% senior debt due 2025 and $300 million 5.875% senior debt due 2033.

The outlook is stable.

The proceeds will be used for general corporate purposes, which may include refinancing existing debt outstanding, Fitch said.

The agency said it expects the company’s key credit ratios will continue at recent levels over the next 12 to 24 months.

Fitch said it generally views the prefunding of maturing debt favorably since it eliminates refinancing risk and improves the long-term liquidity profile from lower interest expense and extended debt maturities.

Moody’s rates Newfield notes Ba1

Moody's Investors Service said it assigned a Ba1 rating to Newfield Exploration Co.’s proposed offering of $500 million senior unsecured notes due 2026.

Newfield's other ratings and stable outlook are unchanged.

Proceeds will be used primarily to repay the existing senior subordinated notes due 2020.

"This offering, in conjunction with over $800 million of equity proceeds, significantly improves Newfield's liquidity at a time when commodity prices are low," Moody's vice president Amol Joshi said in a news release.

"In addition, this transaction is expected to simplify the capital structure with only senior unsecured debt outstanding, by eliminating its existing subordinated debt."

S&P rates Newfield notes, revolver BBB-

Standard & Poor’s said it assigned a BBB- rating to Newfield Exploration Co.’s proposed $500 million senior unsecured notes due 2026.

The proceeds will be used to redeem a portion of its $700 million 6.875% senior subordinated notes due 2020, with the remaining amount funded primarily by cash on the balance sheet.

The company’s BBB- corporate credit rating is unchanged.

The outlook is stable.

S&P also said it assigned a BBB- rating to the company’s recently amended $1.8 billion revolving credit facility maturing in 2020.

Following Newfield’s recent equity offering, which generated net proceeds of $815 million, the company has nothing drawn on its revolver and money market lines of credit, the agency said.

The ratings reflect the company’s satisfactory business risk, significant financial risk and strong liquidity, S&P said.

The ratings also consider Newfield’s small size relative to investment-grade peers, good geographic diversity in the United States and growing exposure to crude oil, which is expected to continue to price at a premium to natural gas, the agency said.

Fitch rates Quest bond BBB

Fitch Ratings said it assigned a BBB rating to the $1.2 billion bond offering by Quest Diagnostics Inc.

The outlook is stable.

Fitch said it expects the bond proceeds, as well as internal liquidity sources, to be used to repay up to $1.275 billion of outstanding debt and associated fees during 2015, including its $500 million of 5.45% senior notes due November 2015; $375 million of 6.4% senior notes due July 2017; $150 million of the 3.2% senior notes due April 2016; and up to $250 million of a combination of its 6.95% senior notes due 2037 and 5.75% senior notes due 2040.

The refinancing will cause reported debt leverage to be temporarily elevated during 2015, Fitch said.

But, the agency said it expects that debt to be repaid and total debt balances to be reduced to about $3.8 billion with gross debt-to-EBITDA between 2.5x and 2.7x by year-end.

S&P rates Quest notes BBB+

Standard & Poor’s said it assigned a BBB+ rating to Quest Diagnostics Inc.’s proposed $1.2 billion senior unsecured notes.

The notes, which will be placed in three tranches maturing in 2020, 2025 and 2045, refinance existing senior unsecured debt, including one issue maturing later this year, S&P said.

The company’s BBB+ corporate credit rating and negative outlook are unchanged.

The ratings reflect a view that a difficult reimbursement environment could impede Quest’s efforts to grow EBITDA and discretionary cash flow and return leverage to historical levels between 2x and 2.5x, S&P said.

The ratings also consider Quest’s leading market position in the critical laboratory services segment, its substantial business scale and scope of services and an expectation that growth in demand for Quest’s services as a result of the Affordable Care Act will partially offset ongoing reimbursement pressure, the agency said.

Moody’s gives Baa2 to Quest Diagnostics notes

Moody's Investors Service said it assigned a Baa2 rating to Quest Diagnostics Inc.’s proposed offering of a total of $1.2 billion senior unsecured notes due 2020, 2025 and 2045.

The agency does not expect a meaningful change in Quest's leverage given the intended use of proceeds.

The stable outlook is unchanged.

Moody's expects the proceeds to be used, along with cash on hand and borrowings under the company's secured accounts receivable credit facility, to refinance certain outstanding notes. These include the announced tender offers to purchase up to $250 million in combined aggregate principal amount of Quest's outstanding 6.95% senior notes due 2037 and 5.75% senior notes due 2040. Additionally, the company plans to redeem all $500 million of the outstanding 5.45% senior notes due 2015, all $375 million of the outstanding 6.4% senior notes due 2017, and $150 million (50%) of the outstanding 3.2% senior notes due 2016.

Moody’s rates Republic Services notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to Republic Services, Inc.'s senior unsecured notes due March 2025.

The outlook is stable.

Proceeds will be used to term out short-term debt used to finance the $485 million acquisition of Tervita LLC, an oilfield waste services provider, in February 2015.

Moody’s said the Baa3 rating reflects Republic Services' strong position in the domestic solid waste sector highlighted by stable revenues, which the agency expects to grow at 2% - 4%, and solid margins with an EBIT margin expected to reach the mid-17% range this year.

S&P rates Retail Properties notes BBB-

Standard & Poor’s said it assigned a BBB- rating to Retail Properties of America Inc.’s $250 million senior unsecured notes due 2025.

The proceeds will be used to repay existing debt due in 2015.

The outlook is stable, reflecting a view that the company will maintain credit metrics consistent with an intermediate financial risk profile while executing the company’s repositioning strategy, S&P said.

The agency said it expects the asset quality of the company’s portfolio fundamentals to improve as the group executes its repositioning strategy.

S&P rates Whirlpool notes BBB

Standard & Poor’s said it assigned a BBB senior unsecured debt rating to Whirlpool Corp.’s €500 million senior unsecured notes due 2020.

The company will issue the notes off of its Rule 415 universal shelf registration for debt securities.

The proceeds will be used for the repayment of its commercial-paper borrowings, S&P said.

The corporate credit rating on Whirlpool is BBB with a stable outlook.

The ratings reflect the company’s strong market position as the largest major appliance manufacturer in the world, supported by its portfolio of well-recognized brand names, breadth of product offerings and geographic diversity, S&P said.

The ratings also consider the company’s intense competition from several large, well-capitalized international companies, participation in a cyclical industry and exposure to fluctuating raw material costs, the agency said.

Fitch: Whirlpool notes BBB

Fitch Ratings said it assigned a BBB rating to Whirlpool Corp.’s proposed offering of €500 million aggregate amount of senior unsecured notes.

The new offering will be equal in right of payment with all other senior unsecured debt.

Whirlpool has a long-term issuer default ratings of BBB, short-term issuer default rating of F2, commercial-paper rating of F2, senior unsecured notes rating of BBB and bank revolving credit facility rating of BBB.

Maytag Corp. has a long-term issuer default rating of BBB and senior unsecured notes rating of BBB.

Whirlpool Finance BV has a short-term issuer default rating of F2 and commercial-paper rating of F2.

Whirlpool Europe BV has a commercial-paper rating of F2.

The proceeds will be used for the repayment of a portion of its commercial-paper borrowings.

The ratings reflect the company’s position as the world’s largest appliance manufacturer with leading market positions in many regions, Fitch said.

The company’s global operating platform, increased manufacturing efficiency and well-recognized skills in innovation have enabled it to improve its cost structure, compete more effectively around the world and adjust to volatile material costs, the agency said.

Risks include intense global competition, volatility of raw material costs, sensitivity to business cycles and ongoing regulatory issues, Fitch said.

S&P affirms AbbVie on acquisition news

Standard & Poor’s said it affirmed all of its ratings on AbbVie Inc., including the A corporate credit rating.

The outlook is negative.

AbbVie will acquire Pharmacyclics for $21 billion and will finance the acquisition with debt and equity.

The affirmation reflects a belief that AbbVie can temporarily withstand higher leverage over the next two years, S&P said.

The negative outlook reflects the potential for the company to sustain leverage at more than 2x – a level higher than typical for the rating – beyond 2016, the agency said.

Moody’s reviews AbbVie

Moody's Investors Service said it placed the Baa1 senior unsecured ratings of AbbVie Inc. under review for downgrade.

This action follows the announcement that AbbVie made an offer to acquire Pharmacyclics Inc. for about $21 billion in cash and stock.

The review was prompted by the large increase in financial leverage, based on the anticipation of significant incremental debt to fund the cash portion of the deal. Moody's estimates pro forma debt/EBITDA of about 4.5 times for the 12 months ended Dec. 31, compared to 2.3 times for AbbVie before the transaction.

Moody’s assigns Baa1 to Lam Research debt

Moody's Investors Service said it assigned a Baa1 rating to Lam Research Corp.'s proposed senior unsecured debt offering and affirmed the existing Baa1 ratings.

The outlook is stable.

Moody’s said the Baa1 senior unsecured rating reflects Lam's strong to leading positions in the deposition, etch and clean sectors of the $32 billion semiconductor equipment market and the strong barriers to entry. Following the mid-2012 acquisition of Novellus, Lam has a number two position in the $8 billion deposition market.

Considering the spending plans announced by major semiconductor companies, the agency anticipates the wafer fabrication equipment (WFE) sector in 2015 will be up 5% to 10%.

Lam is well positioned given its exposure to the memory and foundry sectors, which Moody’s expects will ramp spending this year.

S&P: Kimberly-Clark notes A-

Standard & Poor’s said it assigned an A- rating to Kimberly-Clark de Mexico SAB de CV’s proposed senior unsecured notes for up to $250 million due 2025.

The proceeds will be used to repay its Ps. 1.5 billion existing debt due Nov. 5, 2015 and for other corporate purposes.

The company’s key credit metrics will remain in line with its modest financial risk profile and satisfactory business risk profile, S&P said.

Fitch: Kimberly-Clark notes A

Fitch Ratings said it assigned an expected rating of A to Kimberly-Clark de Mexico, SAB de CV’s proposed $250 million notes due 2025.

The notes will rank at least pari passu in right of payment with all unsecured and unsubordinated debt.

The proceeds from the proposed issuance are expected to be used for general corporate purposes and debt repayment, Fitch said.

The company’s solid business profile is supported by its brand portfolio, low cost structure, extensive distribution network and access to Kimberly-Clark Corp.’s technology and research and development capabilities, the agency said.

The ratings also consider its ability to withstand competitive pressures and soft consumer demand, manage pricing and offset input-cost volatility, all of which is based on its leading business position in Mexico’s consumer product market, Fitch said.

The company is the market leader in most of the product categories with market share positions that are usually three to six times higher than those of the nearest competitor, the agency added.

S&P: Rolls-Royce notes A-

Standard & Poor’s said it affirmed the A- ratings on the secured debt issued by Rolls-Royce & Partners Finance Ltd.

The agency also said it assigned an A- rating to the company’s proposed $250 million senior secured notes.

The A- long-term and A-2 short-term corporate credit ratings are unchanged, along with its stable outlook.

The rating on the proposed notes reflects the company’s credit quality and satisfactory collateral coverage by mostly highly marketable aircraft engines, S&P said.

The proceeds will be used to repay in full the utilized portion of a revolving credit facility of $150 million that matures in April 2016, the agency said, and reduce drawings under its $450 million revolving credit facility.

S&P: Solar Star unchanged

Standard & Poor’s said the BBB project issue ratings on Solar Star Funding LLC are unchanged after the project upsized its senior secured series B notes to $325 million from $315 million.

The agency also said it revised the pricing to 3.95% from the assumed 4.375%.

The outlook is stable.

The series B notes will rank pari passu with the $1 billion senior secured series A notes, which also have BBB ratings.

The additional debt was factored into the original rating, S&P said.

The agency said it now has a slightly more favorable view of quality solar projects, the agency said.

Solar Star Funding LLC is indirectly owned by Berkshire Hathaway Energy Co.

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