S&P cuts Vornado Realty Trust; bonds unchanged

S&P said it downgraded its issuer credit rating on Vornado Realty Trust and its operating partnership, Vornado Realty LP (collectively, VNO), to BBB from BBB+.

At the same time, S&P affirmed the BBB issue-level ratings on the company's unsecured debt given the improved level of secured debt to total assets following the JV transaction.

“The downgrade on VNO's issuer credit rating reflects our view that its competitive position is somewhat weakened from the transfer of $5.6 billion of retail assets into an unconsolidated JV. The transfer results in reduced scale and asset diversity as well as slightly weaker operating margins,” S&P said in a news release.

“In addition, we had previously assumed that VNO would be selling assets to modestly reduce leverage in advance of rising development funding needs. But we now expect S&P Global Ratings' adjusted debt to EBITDA to remain relatively flat at around 8x for the next two years.”

Fitch rates Enel notes BBB

Fitch Ratings said it assigned Enel SpA's (A-/stable) proposed benchmark callable deeply subordinated capital securities an expected rating of BBB.

The proposed securities would qualify for 50% equity credit.

“The hybrid notes are deeply subordinated and rank senior only to Enel's share capital, while coupon payments can be deferred at the option of the issuer. These features are reflected in the BBB(EXP) rating, which is two notches lower than Enel's senior unsecured rating,” the agency said in a news release.

Moody’s rates Enel hybrid Ba1

Moody's Investors Service said it assigned a Ba1 long-term rating to the junior subordinated hybrid capital security to be issued by Enel SpA.

The outlook is stable.

The size and completion of the hybrid are subject to market conditions.

“The Ba1 rating assigned to the hybrid is two notches below Enel's senior unsecured rating of Baa2, reflecting the features of the hybrid. It is very long-dated, deeply subordinated and Enel can opt to defer coupons on a cumulative basis,” the agency said in a news release.

“The rating is in line with those of the existing hybrid notes issued by the company.”

S&P gives BB+ to Parampujya Solar bonds

S&P said it assigned its preliminary BB+ long-term issue rating to a proposed US$500 million senior secured fixed-rate five-year bond by Parampujya Solar Energy Pvt. Ltd. Restricted Group (PSEPL RG).

“Our rating reflects PSEPL RG's moderate to low debt service coverage ratio (DSCR) and predictability of cash flows,” S&P said in a news release.

PSEPL RG comprises three wholly owned subsidiaries of Adani Green Energy Ltd. (AGEL): Adani Green Energy (UP) Ltd., Parampujya Solar Energy Pvt. Ltd., and Prayatna Developers Pvt. Ltd. These entities (collectively referred as PSEPL RG) will be the co-issuers and co-guarantors of the proposed bond.

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