Moody's downgrades ADO

Moody's Investors Service said it assigned a new corporate family rating of Ba1 to ADO Properties SA. Concurrently, the agency downgraded the senior unsecured rating of ADO to Ba1 from Baa3. The outlook was changed to negative from rating under review.

Moody's said it withdrew ADO's Baa3 rating following its downgrade to Ba1, as per the rating agency's practice for corporates with non-investment-grade ratings.

"The downgrade of ADO's ratings reflect the weaker credit profile following the acquisition of Adler Real Estate AG, which resulted in higher leverage," said Oliver Schmitt, a vice president and senior credit officer at Moody's, in a press release.

"The further downside risk to leverage, and execution risks on the realization of synergies, expected sales, and the intended capital raise, as well as an unclear situation around the intended purchase of Consus Real Estate AG, contribute to the negative outlook of the ratings," Schmitt said.

Fitch cuts Duff & Phelps fund notes

Fitch Ratings said it downgraded the ratings assigned to the senior secured notes and the mandatory redeemable preferred shares issued by DNP Select Income Fund Inc. to AA from AAA and placed the ratings on rating watch negative (RWN).

Fitch also placed the AA ratings assigned to the preferreds of Duff & Phelps Utility and Infrastructure Fund on RWN.

“The downgrades and RWN reflect recent extreme market volatility and reduced asset liquidity, which have quickly eroded asset coverage cushions for closed-end funds and challenged fund managers' ability to de-leverage,” Fitch said in a press release.

Moody’s downgrades Unum

Moody's Investors Service said it downgraded the debt ratings of Unum Group to Baa3 from Baa2.

Moody's also lowered the senior secured debt rating from Baa1(sf) to Baa2(sf) of Northwind Holdings, LLC, a limited liability company wholly-owned by Unum. The outlook on Unum and its affiliates was changed to negative from stable.

“The rating downgrade reflects the announcement by the company that it will strengthen its long-term care statutory reserves by $2.1 billion over the next seven years, which will cause a strain on holding company liquidity, notwithstanding the suspension in share repurchases. The negative outlook reflects our view that there will be weakening profitability and statutory capital generation in the next 12-18 months resulting from coronavirus and the related economic shock,” Moody’s said in a press release.

S&P cuts Westinghouse Air Brake

S&P said it downgraded Westinghouse Air Brake Technologies Corp. and its senior unsecured debt to BBB- from BBB.

The outlook is negative.

“The downgrade and negative outlook reflects our revised view of the global macroeconomic environment and subsequent pressure on both freight and transit revenues. We believe the global recession will strain Wabtec's ability to meet our previous expectation for leverage to decline to the mid-2x area by the end of the year. We now believe it is more likely Wabtec's adjusted debt to EBITDA will be in the 3x-4x range in 2020 and the company will modestly reduce debt in 2021,” said S&P in a press release.

S&P ups CCR Re

S&P said it affirmed its AA long-term ratings on Caisse Centrale de Reassurance and raised its ratings on CCR Re to A from A-.

“We consider that CCR Re's prudent underwriting has enabled it to improve its technical results – its net combined ratio stood at 98.1% at the end of 2019. (Lower combined ratios indicate better profitability. A combined ratio of greater than 100% signifies an underwriting loss.) Furthermore, CCR Re has progressively widened its geographical presence and increased its diversification between life and non-life lines of business,” S&P said in a press release.

The outlook for both companies is stable.

Fitch ups Schwab's preferreds to BBB-

Fitch Ratings said it upgraded Charles Schwab Corp.'s preferred stock rating to BBB- from BB+ and removed the under criteria observation. Schwab's preferred stock rating had been placed on UCO on Feb. 28 in conjunction with the publishing of new bank rating criteria, the agency said.

“Within the new criteria, Fitch reduced the base case notching for nonperformance on preferred stock, narrowing the relative gap between subordinated tier 2 and AT1 instruments,” Fitch said in a press release.

Fitch lifts Sunrise Communications

Fitch Ratings said it upgraded Sunrise Communications Holdings SA’s long-term issuer default rating to BBB-from BB+. Fitch also affirmed Sunrise’s and Sunrise Communications AG’s senior secured debt instrument ratings at BBB-.

“The upgrade reflects Fitch’s adoption of its revised approach to leverage metrics following the introduction of IFRS 16 lease accounting and associated changes made to our corporate rating criteria and recalibration of the telecoms navigator leverage thresholds,” the agency said in a press release.

The previous adjustment of increasing the lease-adjusted debt relating to Sunrise towers’ disposal and related long-term payments now falls away, Fitch said.

Fitch’s approach to Sunrise’s leverage metrics now follows what would happen if a telecoms operator sold similar passive infrastructure to repay debt, the agency said.

The outlook is stable.

Fitch changes Axis Capital view to negative

Fitch Ratings said it revised the outlook for AXIS Capital Holdings Ltd. to negative from stable.

The revision reflects recent and pro forma results that fall outside financial performance and earnings rating sensitivities and criteria guidelines, the agency said.

“AXIS posted a 2019 combined ratio of 102.6% and operating ratio of 92.2%, up from 99.9% and 90.7%, respectively, in 2018. The increase was driven by a higher expense ratio primarily attributable to the insurance segment due to acquisition costs related to the Novae purchase and a reduced benefit from favorable reserve development, partially offset by lower, albeit still elevated, catastrophe losses,” Fitch said in a press release.

` Fitch affirmed the company’s A- issuer rating.

S&P revises Drawbridge view to negative

S&P said it revised the outlook for Drawbridge Special Opportunities Fund LP to negative from stable.

“DBSO ended 2019 with stressed leverage of 2.25x, which we expect to decline over the next 12-24 months as the company navigates the impact of the pandemic. Our calculation of stressed assets-to-recourse liabilities includes a 42% haircut on corporate-lending investments, a 50% haircut on real estate investments, 75% haircut on structured finance and portfolio and orphaned assets and an 85% haircut on corporate debt and securities. We also assume DBSO will maintain $100 million in unrestricted cash at the fund level,” said S&P in a press release.

The agency affirmed the BBB ratings on the partnership and its senior unsecured notes.

Fitch changes First National of Nebraska view to negative

Fitch Ratings said it revised the outlook to negative from stable and affirmed First National of Nebraska, Inc.'s long-term issuer default rating at BBB.

The outlook revision reflects significant operating environment challenges due to the disruption to economic activity and financial markets from the coronavirus pandemic, Fitch said.

S&P changes FirstGroup view to negative

S&P said it revised the outlook for FirstGroup plc to negative from stable and affirmed the BBB- ratings on the company and its senior unsecured debt.

“We expect FirstGroup's revenues to drop sharply across all its divisions amid the significant reduction in passenger volumes due to the Covid-19 containment measures. The recovery prospects for demand for the group's transport services remain uncertain, especially as the U.S. and U.K. economies enter into recession,” said S&P in a press release.

S&P revises Stagecoach view to negative

S&P said it revised the outlook for Stagecoach Group plc to negative from stable, but affirmed the BBB- ratings on the company and its senior unsecured debt.

“The negative outlook reflects a material downward revision to our forecasts for Stagecoach's revenue and cash flow. This follows a sharp fall in passenger volumes amid the U.K. government's Covid-19 containment measures; a fall that is not likely to be fully offset by substantial government support for the U.K. bus industry,” S&P said in a press release.

DBRS changes Fortis trend to positive

DBRS said it changed the trend for all ratings of Fortis Inc. to positive from stable and confirmed the ratings.

The positive trends reflect a significant reduction of debt following the sale of a 51% interest in the Waneta Hydroelectric expansion and the $1.2 billion common stock offering in December, DBRS said.

It also mirrors the solid 2019 credit metrics and expected solid consolidated metrics in the near-to-medium term, and a continued strong business risk profile at regulated utilities, the agency said.

Moody’s changes Dairy Farmers view to stable

Moody’s Investors Service said it revised the outlook for Dairy Farmers of America Inc. to stable from negative.

“This change follows the closing of DFA's purchase of 44 facilities from Dean Foods Co.(Dean) for $433 million financed by a new $450 million delayed draw term loan (not rated by Moody's). Three of these facilities will be held separate and divested at a later date as agreed upon with the Department of Justice,” the agency said in a press release.

Moody’s affirmed all its ratings for Dairy Farmers of America.

Moody’s rates Altria notes A3

Moody's Investors Service said it assigned an A3 rating to Altria Group Inc.'s senior unsecured note offerings with a tenor of five, 10 and 30 years.

Proceeds will be used for general corporate purposes, which may include repayment of outstandings under the senior unsecured five-year revolver.

All other ratings, including the A3 senior unsecured rating, remain unchanged, the agency said.

S&P assigns Altria notes BBB

S&P said it assigned its BBB rating to Altria Group Inc.'s proposed senior unsecured notes.

“We expect Altria will use the net proceeds from the note offering for general corporate purposes, which may include repaying amounts outstanding under its fully drawn $3 billion revolver (not rated). The transaction does not meaningfully impact credit metrics,” said S&P in a press release.

All of the agency’s ratings on the company, including its BBB issuer credit rating, are unchanged, S&P said.

The outlook is stable.

Moody's assigns Amgen notes Baa1

Moody's Investors Service said it assigned a Baa1 rating to the new senior unsecured note offering of Amgen Inc.

Proceeds are for general corporate purposes including working capital, investments in the business and upcoming debt maturities.

“There are no changes to the existing ratings of Amgen, including the Baa1 senior unsecured long-term rating. The outlook remains unchanged at stable,” said Moody’s in a press release.

S&P rates Amgen notes A-

S&P said it assigned its A- issue-level rating to Amgen Inc.'s proposed offering of about $4 billion of senior unsecured notes.

“The rating is the same as our issuer credit rating on Amgen,” S&P said in a press release.

Amgen plans to use the proceeds for general corporate purposes, including, but not limited to, working capital and upcoming debt maturities.

S&P assigns Apple notes AA+

S&P said it assigned its AA+ rating to Apple Inc.'s senior unsecured notes.

Apple will use the proceeds for general corporate purposes, including share repurchases, dividends and repayment of debt.

“We rate the new notes the same as our long-term issuer credit rating on the company. All of our other ratings on Apple are unchanged,” said S&P in a press release.

S&P assigns Dairy Farmers loan BBB

S&P said it assigned a BBB to the Dairy Farmers of America Inc.’s $500 million senior unsecured term loan.

The agency removed all the company’s ratings from CreditWatch with negative implications and affirmed all its ratings, including the BBB rating on its senior unsecured notes and BB+ on its preferred equity.

Dairy Farmers closed the acquisition of substantially all the assets of Dean Foods Co. for $433 million in an all debt-funded transaction, resulting in modestly higher pro forma leverage of 4.7x, S&P said .

The outlook is negative.

Fitch rates Dairy Farmers loan BBB

Fitch Ratings said it assigned a BBB rating to Dairy Farmers of America Inc.’s multi-tranche term loan used to fund the acquisition of Dean Foods Co.’s milk processing assets valued at about $433 million.

Fitch also removed the Dairy Farmers’ ratings from rating watch negative and affirmed all its ratings.

The outlook is negative.

“Prior to the Dean Foods transaction, Fitch's forecast previously assumed DFA would reduce total debt-to-EBITDA to the low 3x range (based on Fitch's cost of goods sold (COGS) adjustment, and mid 5x range on an unadjusted total debt/EBITDA basis) in 2020. Fitch now expects pro forma total debt-to-EBITDA in the upper 3x range (Fitch COGS adjustment, low 6x range on an unadjusted basis) at the end of 2020 absent asset sales,” the agency said in a press release.

S&P assigns Kraft Heinz notes BB+

S&P said it assigned its BB+ issue rating to Kraft Heinz Co.'s proposed senior unsecured notes due 2027 and 2030, which are being offered to qualified institutional buyers under Rule 144A.

The notes will be issued by Kraft Heinz Foods Co. and guaranteed by Kraft Heinz Co. The recovery rating on the proposed notes is 3, indicating creditors could expect meaningful (50%-70%; rounded estimate: 60%) recovery in the event of a payment default.

“We expect the proceeds from the proposed leverage-neutral offering will be used to fund the tender offer for certain specified senior unsecured note issuances, and the conditional redemption of all or a portion of the 3.375% senior notes due 2021, of which there is $300 million outstanding,” said S&P in a press release.

“All of our existing ratings, including our BB+ issuer credit rating, are unchanged,” the agency said.

The outlook is negative.

Fitch rates Oaktree notes A

Fitch Ratings said it assigned an expected rating of A to Oaktree Capital Management, LP’s planned issuance of $250 million of senior unsecured notes, which will include $200 million of notes maturing in July 2030 and $50 million of notes maturing in July 2035.

Proceeds are expected to be used to repay revolver borrowings and for general corporate purposes.

Fitch affirmed Oaktree and Oaktree Capital Group LLC at A.

The outlook is stable.

S&P rates Oneok notes BBB

S&P said it assigned Oneok Inc.’s proposed senior unsecured notes a BBB rating.

The notes will be guaranteed, jointly and severally, on an unsecured basis by Oneok Partners LP and Oneok Partners Intermediate LP, a wholly-owned subsidiary of Oneok Partners.

The company intends to use the proceeds to repay a portion of the outstanding amounts under its $1.25 billion term loan due November 2021 (not rated) and for general corporate purposes, which may include the repayment of other debt and funding of growth capital spending.

Fitch rates Pension Insurance BBB+

Fitch Ratings said it assigned Pension Insurance Corp. plc's £300 million issue of dated subordinated tier 2 notes a BBB+ rating.

The notes are rated two notches below Pension Insurance's A rating, which has a stable outlook, to reflect their subordination and loss-absorption features, Fitch said.

The proceeds will be used for general corporate purposes. The notes have an 11-year maturity and a fixed coupon of 4.625% per annum, payable annually in arrear.

Moody’s rates Starbucks notes Baa1

Moody’s Investors Service said it assigned a Baa1 rating to Starbucks Corp.’s proposed senior unsecured notes offering.

Proceeds will be used to repay commercial paper and near-term debt maturities as well as other general corporate purposes, which includes dividends.

The agency revised the outlook to negative from stable.

“The change in outlook to negative reflects Starbuck's material increase in term debt at a time when there is substantial uncertainty around the duration and severity of the coronavirus pandemic on Starbuck revenues, earnings and credit metrics longer term,” said Bill Fahy, a Moody's vice president and senior credit officer, in a press release.

Moody’s affirmed the company’s ratings, including its Baa1 senior unsecured rating.

S&P assigns Starbucks notes BBB+

S&P said it assigned its BBB+ rating to Starbucks Corp.’s proposed offering of $3 billion of notes.

Proceeds will be used to build a liquidity cushion and pre-fund upcoming maturities during a period of temporary store closures, the agency said.

S&P also affirmed Starbucks’ BBB+ rating and changed the outlook to negative from stable.

“ The outlook revision reflects our worsening view of the impact of the Covid-19 pandemic on Starbucks' operations and our weaker economic forecast which elevates the risk of prolonged credit measure deterioration,” the agency said in a press release.

S&P rates Teachers notes AA-

S&P said it assigned its AA- subordinated debt rating to Teachers Insurance & Annuity Association of America’s proposed surplus notes due 2050.

Proceeds will be used for general corporate purposes.

“We do not expect this issuance to affect our current ratings on TIAA,” said S&P in a press release.

“We are rating these surplus notes two notches below our financial strength rating on TIAA. One notch represents subordination to the policyholder obligations, the company’s indebtedness, and other creditor claims including the $1 billion principal amount of 4% senior notes due 2028 issued by Nuveen LLC and guaranteed by TIAA. The second notch captures payment risk since payments may be deferred due to regulatory restrictions,” the agency said.

Fitch rates TIAA notes AA

Fitch Ratings said it assigned AA ratings to $1.25 billion of surplus notes issued by Teachers Insurance and Annuity Association of America.

Proceeds will be used for general corporate purposes.

The rating is equivalent to the rating on TIAA's existing surplus notes, Fitch said.

“Pro forma financial leverage increases to 16.8% from 14.7%. Fitch expects the increase in leverage to be temporary and to decline back below 16%,” the agency said in a press release.

Fitch assigns Whirlpool notes BBB

Fitch Ratings said it assigned a BBB rating to Whirlpool Corp.'s proposed offering of senior unsecured notes.

The company intends to use the proceeds to repay outstanding amounts under its revolving credit facility.

“The transaction will be leverage neutral, but the additional long-term debt will lead to slightly higher debt levels at YE20 and YE21 than Fitch previously expected. However, the rating incorporates Fitch's expectation that total long-term debt levels will return to about $4.4 billion by YE22, bringing total debt to below 2.5x by year-end, in line with our previous assumptions,” the agency said in a press release.

Fitch currently rates Whirlpool and its unsecured notes BBB with a negative outlook.

S&P rates Whirlpool notes BBB

S&P said it assigned its BBB issue-level rating to Whirlpool Corp.'s proposed senior unsecured notes (final amount and maturity to be determined).

Whirlpool intends to use the proceeds to improve its liquidity by repaying a portion of the borrowings under its $3.5 billion revolving credit facility due 2024. As of March 31, 2020, Whirlpool had about $2.2 billion of outstanding under the facility.

“We believe there is minimal subordination risk for these proposed notes and the existing unsecured debt issued by group parent Whirlpool Corp., despite the $2.6 billion of subsidiary debt in the company's capital structure because almost all of the subsidiary debt was issued by captive finance subsidiaries with no material operating assets,” said S&P in a press release.

All of S&P’s ratings on Whirlpool, including the BBB issuer credit rating, are unchanged, the agency said.

The outlook is negative.

Fitch acts on airline EETCs

Fitch Ratings said it took various actions on aircraft-backed EETCs issued by Hawaiian Airlines, JetBlue Airways and Spirit Airlines. The rating actions are primarily driven by Fitch's April 10 downgrade of these U.S.-based carriers and by weakening levels of over-collateralization for some transactions.

Fitch said it lowered Hawaiian's 2013-1 class A certificates to BBB- from A-. “A sharp decline in appraised values for the A330-200 over the past year has caused the transaction to fail to pass Fitch's A or BBB level stress test,” the agency said in a press release.

Fitch also downgraded Hawaiian's 2013-1 class B certificates to BB+ from BBB-. “The downgrade follows Fitch's April 10 downgrade of Hawaiian's long-term issuer default rating (IDR) to B+ from BB-. The BB+ rating reflects a three notch uplift, driven by the affirmation factor and the presence of a liquidity facility,” Fitch said.

Fitch said it put JetBlue's 2019-1 class AA certificates on rating watch negative and affirmed the class A certificates at A. The rating watch on the class AA certificates reflects general uncertainty around asset values and airlines during the pandemic and acknowledges risks are elevated for ratings in the AA category.

“Ratings for the class AA and class A certificates are primarily based on a top-down analysis based on the value of the collateral. Both classes of certificates continue to pass Fitch's stress tests with maximum stress scenario loan-to-values (LTVs) in the low-to-mid 90% range,” the agency said.

Fitch also affirmed JetBlue's 2013-1 class A certificates at A+. “The 2013-1 transaction has amortized over time and remains highly over-collateralized, supporting the A+ rating,” Fitch said.

Finally, Fitch said it put Spirit's 2017-1 class AA certificates on rating watch negative and affirmed the 2017-1 and 2015-1 class A certificates at A.

“The rating watch on the class AA certificates reflects general uncertainty around asset values and airlines during the coronavirus downturn and acknowledges that risks are elevated for ratings in the AA category. The AA and A certificate ratings are based on Fitch's top-down methodology. The ratings reflect levels of over-collateralization that allow the transactions to continue to pass our AA or A level stress tests. Maximum stress scenario LTVs are in the low 90% range for the 2017-1 class AA certificates and in the mid-to-upper 80% range for the 2017 and 2015 class A certificates,” the agency said.

Fitch also downgraded Spirit's 2017-1 and 2015-1 class B certificates to BBB from BBB+. The one-notch downgrade reflects Fitch's April 10 downgrade of Spirit's IDR to BB- from BB. “The BBB ratings are derived through a two-notch uplift for a high affirmation factor, one notch for the presence of a liquidity facility and an additional notch for good recovery prospects,” Fitch said.

Fitch gives Altria notes BBB

Fitch Ratings said it assigned a BBB rating to Altria Group Inc.'s multi-tranche benchmark-sized senior notes offering.

Proceeds will be used for general corporate purposes, which may include repayment of amounts outstanding under the company's revolving credit facility.

The notes will be guaranteed by Altria's wholly owned subsidiary, Philip Morris USA Inc. The guarantee will rank equally with all of Philip Morris' senior unsecured indebtedness.

The outlook is stable.

S&P revises outlooks for 13 U.S. banks

S&P said it revised its outlooks to negative and affirmed its ratings on 13 U.S. banks and their rated operating subsidiaries.

The negative outlook reflects the effects of the pandemic on segments of commercial, commercial real estate and consumer lending, S&P said.

“We affirmed our ratings and revised to negative, from stable, the outlooks on Ally Financial Inc., Capital One Financial Corp., Discover Financial Services, Synchrony Financial, SLM Corp., American Savings Bank FSB, CIT Group Inc., East West Bancorp Inc., Investors Bancorp Inc., New York Community Bancorp Inc., Synovus Financial Corp., Trustmark Corp., and Valley National Bancorp,” the agency said in a press release.

The agency also affirmed its ratings and maintained a stable outlook on American Express Co. and affirmed its ratings and maintained a negative outlook on UMB Financial Corp.

Moody's gives Kraft Heinz notes Baa3

Moody's Investors Service said it assigned Baa3 ratings to $1.5 billion of senior unsecured notes being offered today by Kraft Heinz Foods Co.

The notes will be issued in two tranches and will be guaranteed by its parent, the Kraft Heinz Co.

Proceeds of the seven-year and 10-year notes will be used to fund a conditional tender launched concurrently for up to $1.2 billion of unsecured notes, a conditional debt redemption of $300 million of unsecured notes, to enhance liquidity and for general corporate purposes.

All other company ratings, including its Baa3 senior unsecured rating, remain unchanged, Moody’s said.

The outlook is negative.

S&P gives Oaktree notes A-

S&P said it assigned its A- rating to Oaktree Capital Management LP's issuance of $250 million of senior unsecured notes: $200 million 3.64% notes due 2030 and $50 million 3.84% notes due 2035.

The $250 million notes issuance, a private debt placement, will be guaranteed by Oaktree Capital I LP, Oaktree Capital II LP and Oaktree AIF Investments LP on a joint and several basis.

Oaktree intends to use the proceeds for general corporate purposes, including paying down amounts outstanding on a revolving credit facility.

Fitch gives Starbucks notes BBB

Fitch Ratings said it assigned a BBB rating to Starbucks Corp.’s proposed offering of $3 billion of unsecured notes.

Proceeds will be used to support near-term liquidity. Fitch said it forecasts significant negative operating cash flow in the fiscal third quarter in addition to capital expenditures and the quarterly dividend.

Fitch also trimmed the ratings for Starbucks, its revolver and senior unsecured notes to BBB from BBB+.

“The downgrade is the result of Starbucks' higher leverage profile following the proposed issuance of $3 billion. The new debt is projected to increase Starbucks' adjusted debt/EBITDAR by around a half a turn on an ongoing basis, though Fitch recognizes the company could use a portion of the proceeds to fund the maturities of $1.25 billion of debt that comes due in the company's fiscal 2021, mitigating the leveraging impact,” Fitch said in a press release.

The outlook is negative.

Moody’s gives TIAA notes Aa3

Moody's Investors Service said it assigned an Aa3 (hyb) subordinated debt rating to the expected issuance of around $1 billion of 30-year fixed-rate surplus notes by Teachers Insurance and Annuity Association of America.

The proceeds are expected to be used for general corporate purposes.

The rating reflects the typical two-notch difference between an operating company's insurance financial strength rating and its surplus note rating, because of the subordination of surplus notes to policyholder and senior creditor claims, Moody’s explained.

Moody's gives Whirlpool notes Baa1

Moody's Investors Service said it assigned a Baa1 rating to Whirlpool Corp.'s new $500 million of senior unsecured 30-year notes.

Last week, Whirlpool also put in place a $500 million 364-day unrated revolver, the agency said.

“All other ratings for the company and its subsidiaries including the Baa1 senior unsecured rating, remain unchanged,” Moody’s said in a press release.

The proceeds and revolver draw will be used to repay debt under the $3.5 billion revolver due in 2024 to provide Whirlpool with added liquidity over the short-term and amid the uncertainties created by the coronavirus outbreak, the agency said.

The outlook is stable.

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