Moody’s might lower MDC Holdings

Moody's Investors Service said it placed the senior unsecured rating of MDC Holdings, Inc., which is currently at Baa3 with a negative outlook, on review for downgrade.

The review was prompted by MDC's consistent year-to-date underperformance versus the agency’s expectations for its earnings growth and improvement in its key credit metrics.

Fitch lifts Prologis view to positive

Fitch Ratings said it revised the outlook on Prologis, Inc. to positive from stable.

The agency also said it affirmed Prologis’s issuer default rating at BBB and $78.2 million preferred stock at BB+.

Fitch also affirmed Prologis, LP’s issuer default rating at BBB, along with BBB ratings on its $2.5 billion global senior credit facility, $5.6 billion senior unsecured notes, $460 million senior unsecured exchangeable notes and €500 million multi-currency senior unsecured term loan.

Prologis Tokyo Finance Investment LP’s ¥45 billion senior unsecured revolving credit facility also was affirmed at BBB, along with its ¥40.9 billion senior unsecured term loan.

The positive outlook reflects the material improvement in the company’s liquidity position, increasing cash flow in excess of fixed charges, reflecting strong property fundamentals, Fitch said.

Credit strengths include strong asset quality, excellent access to capital and a global platform with diversification by location and tenant, the agency said.

The main credit concerns are high leverage and the continued increase in the company’s speculative development pipeline, Fitch said.

Moody’s gives BTMU TCDs Aa3

Moody's Japan K.K. said it assigned its Aa3 rating to the A$600 million transferable certificates of deposit (TCDs) due Sept. 18, 2018 issued by Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) Sydney Branch under its TCD program.

The outlook is stable.

This is a takedown from the bank’s A$3 billion transferable certificates of deposit program, which is rated provisional Aa3/provisional Prime-1.

Moody’s said BTMU's Aa3 ratings incorporate a three-notch uplift from the bank's baseline credit assessment of a3, due to the agency’s assessment of the very high probability of systemic support in times of stress, given the bank's importance to MUFG and Japan's financial system.

Moody’s affirms Gulfstream at Baa2

Moody's Investors Service said it affirmed Gulfstream Natural Gas System LLC's Baa2 senior unsecured rating.

The outlook remains stable.

"The affirmation of Gulfstream's senior unsecured rating and stable outlook reflects the company's position as a highly contracted natural gas pipeline that serves the attractive Florida market under long term contracts with credit-worthy shippers," Moody's analyst Lesley Ritter said in a news release.

S&P: Harley-Davidson notes A-

Standard & Poor’s said it assigned an A- rating to Harley-Davidson Financial Services Inc.’s proposed $400 million medium-term notes due 2019.

The company intends to use the proceeds from the transaction for general corporate purposes.

The A- corporate credit rating on Harley-Davidson Inc. and other ratings on the company were unchanged.

The outlook is stable.

Harley’s satisfactory business risk profile reflects its strong brand and 54.9% market share of the U.S. heavyweight motorcycle market in 2013, as well as an enthusiastic customer base and an expectation for continued improvement in operating trends, S&P said.

Also, the agency said it believes the credit profile of Harley-Davidson’s receivables has improved over the past few years as a result of improvement to underwriting standards.

Susceptibility to supply-chain disruptions, changes in discretionary spending patterns and a lack of diversity somewhat offset the strengths, S&P said.

Fitch: Harley-Davidson notes A

Fitch Ratings said it expects to assign an A rating to Harley-Davidson Financial Services, Inc.’s proposed $400 million five-year medium-term note issuance.

Harley-Davidson Financial is the captive finance subsidiary of Harley-Davidson, Inc.

The companies share a close operating relationship, which also is evidenced by a support agreement. Both companies have long-term issuer default ratings of A with a stable outlook.

Harley-Davidson Financial also has a short-term issuer default rating of F1, senior unsecured rating of A and commercial-paper rating of F1.

The proceeds will be used for general corporate purposes, Fitch said.

The notes are expected to rank equally in right of payment with all existing and future unsecured and unsubordinated debt, the agency said.

S&P: Owens & Minor notes BBB

Standard & Poor’s said it assigned a BBB senior unsecured debt rating to Owens & Minor Inc.’s $250 million senior unsecured notes due 2021 and $300 million senior unsecured notes due 2024.

The agency also said it affirmed the BBB long-term corporate credit rating on the company.

The outlook is stable.

The agency said it believes the company is likely to continue to make moderate-sized acquisitions to achieve meaningful growth, but leverage will likely remain in the 2.0x or less range.

The stable outlook reflects an expectation that the company will extend its stable operating trends and sustain adjusted leverage below 2x, despite industry headwinds, S&P said.

Fitch rates Owens & Minor bonds BBB-

Fitch Ratings said it assigned a BBB- rating to the new senior unsecured bonds issued by Owens & Minor, Inc.

The proceeds are expected to be used to redeem the company’s $200 million of 2016 bonds, fund the $233 million purchase of Medical Action Industries Inc. and for general corporate purposes.

The outlook is stable.

The company has a long-term issuer default rating of BBB-, senior unsecured bank facility rating of BBB- and senior unsecured notes rating of BBB-.

Pro forma for the bond issuance, Fitch said it expects Owens & Minor’s debt leverage to about 2x.

The ratings are constrained by company management’s stated willingness to increase debt leverage for mergers and acquisitions, the agency said.

Moody’s rates Owens & Minor notes Ba1

Moody's Investors Service said it assigned Ba1 ratings to Owens & Minor, Inc.'s proposed $300 million and $250 million senior unsecured notes.

In a related action, the agency affirmed the company's Ba1 corporate family rating and Ba1-PD probability of default rating and assigned a speculative grade liquidity rating of SGL-2.

The outlook is stable.

Proceeds from the proposed transaction are expected to be utilized to redeem the company's existing $200 million 6.35% senior unsecured notes due 2016, fund the acquisition of Medical Action Industries and for general corporate purposes.

Moody’s said that while the transaction increases the company's funded debt to $550 million from $200 million resulting in almost a turn of additional leverage from the low current adjusted debt to EBITDA level of near 2 times, leverage remains within the Ba1 rating tolerance.

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