S&P lowers Excellus view to negative

Standard & Poor’s said it affirmed Excellus Health Inc.’s A- long-term counterparty credit and financial strength ratings, along with the ratings on its core operating subsidiaries.

The agency also said it revised the group’s outlook to negative from stable.

S&P also said it affirmed the A- ratings on Excellus’s wholly owned subsidiaries, MedAmerica Insurance Co., MedAmerica Insurance Co. of New York and MedAmerica Insurance Co. of Florida and revised the outlook to negative from stable based on the capital support agreement provided by Excellus.

The negative outlook reflects the group’s deteriorated operating performance and capital adequacy, which will remain pressured during the next 12 to 18 months, the agency said.

Although the company is expected to improve its capital and earnings to a level appropriate for the rating by 2016 through operating and capital-restoration initiatives, the negative outlook reflects the execution risk and uncertainty in reaching these targets given continued weakness, S&P said.

Fitch downgrades eBay

Fitch Ratings said it downgraded eBay, Inc.’s senior unsecured revolving credit facility to A- from A, senior unsecured notes to A- from A, short-term issuer default rating to F2 from F1 and $2 billion commercial-paper program to F2 from F1.

The downgrades follow news that eBay will spin off PayPal in the second half of 2015, Fitch said.

The agency also said it placed the company’s long-term ratings on Rating Watch negative.

The downgrades reflect expectations for weakened credit-protection measures pro forma for the transaction and decline in business diversity, Fitch said.

The agency said it believes the new eBay’s operating model supports an A- rating and the negative watch could be resolved without further downgrades should the company commit to managing total leverage less than 2x post-separation.

Moody’s upgrades GKN Holdings to Baa3

Moody's Investors Service said it upgraded the senior unsecured ratings of GKN Holdings plc, to Baa3 from Ba1.

The outlook is stable.

GKN Holdings is the finance, investment and holding company of GKN Group.

The action was prompted by the swift improvement in credit metrics, which GKN Group has achieved since the acquisition of Volvo Aero in October 2012 as reflected by the generation of solid profit margins, consistently positive free cash flow and subsequent debt and leverage reduction.

"We have upgraded GKN back to investment grade in consideration of a solid operating performance in combination with a financial policy balancing the interests of shareholders and lenders," Oliver Giani, Moody's lead analyst for the European automotive supplier industry, said in a news release.

"Looking ahead we expect to see a further gradual strengthening of GKN's credit profile which will allow the group to maintain credit metrics that are in line with Moody's expectations for an investment grade rating."

S&P upgrades Nuveen

Standard & Poor’s said it raised the issuer credit rating on Nuveen Investments Inc. to BBB from B- and removed the rating from CreditWatch, where it was placed with positive implications in April.

The outlook is stable.

The agency also said it raised Nuveen’s stand-alone credit profile to BB from B-.

S&P also said it withdrew the B issue credit rating on the company’s senior secured first-lien term loan and revolver and CCC issue credit rating on the company’s senior secured second-lien term loan.

The agency also said it raised the issue credit rating on the company’s senior unsecured notes to BBB from CCC and removed it from CreditWatch positive.

The upgrade follows the close of TIAA’s acquisition of Nuveen, S&P said.

The transaction improves Nuveen’s financial and business profiles by significantly reducing the company’s outstanding debt, supporting improved cash-flow generation due to lower interest expense and potentially creating new growth opportunities, the agency said.

The ratings also benefit from implicit support from TIAA, S&P said.

Moody’s: SABMiller outlook to positive

Moody's Investors Service said it affirmed the Baa1 long-term senior unsecured ratings of SABMiller plc, the provisional Baa1 rating on its medium-term note program and the Baa1 senior unsecured ratings on its guaranteed subsidiaries.

The agency also affirmed SABMiller's and its guaranteed subsidiaries’ P-2 short-term ratings, the Baa1 issuer rating of Foster's Group Pty. Ltd. and the national scale ratings of Aa3.za/P-1.za assigned to Sabsa Holdings Ltd.

The outlook was changed to positive.

"Today's change in outlook reflects the company's improvements in operating performance and strengthened business profile over recent years and our expectations that the company will further improve, albeit modestly, its credit metrics," Paolo Leschiutta, Moody's vice president, senior credit officer and lead analyst for SABMiller, said in a news release.

"With financial leverage of 2.7x, measured as Moody's-adjusted debt to EBITDA, and EBITA margins of around 33% as of end of March 2014, SABMiller's credit metrics are on the right trajectory for a rating transition within the next 12 to 18 months."

Fitch rates Tyson loan BBB

Fitch Ratings said it affirmed Tyson Foods, Inc.’s long-term issuer default rating at BBB, unsecured term loans at BBB, senior unsecured notes at BBB and short-term issuer default rating at F2.

Fitch also said it assigned a BBB rating to Tyson’s new five-year $1.25 billion senior unsecured revolving credit facility.

The outlook is stable.

Tyson’s new revolving credit facility, which replaces the company’s previous $1 billion revolver, matures Sept. 25, 2019 and can be upsized by $500 million, Fitch said.

The facility is guaranteed by wholly-owned subsidiary Tyson Fresh Meats until Tyson Fresh Meats no longer guarantees Tyson’s 2016 notes, the agency said.

S&P rates Ares notes A-

Standard & Poor’s said it assigned an A- rating on Ares Management LP’s proposed 10-year senior unsecured note issuance due 2024.

The size of the offering has not been finalized and will be subject to market conditions, but for the purposes of the rating, the amount will be considered between $250 million and $300 million, S&P said.

The proceeds from the notes, which its indirect subsidiary Ares Finance Co. LLC will issue, will be used to pay down about $164 million of outstanding borrowings on its revolving credit facility and the remaining balance on its promissory notes issued in connection with a prior acquisition.

Ares recently announced that it entered into a non-binding letter of intent for this acquisition, but has not disclosed any further details about the target company.

The company’s A- issuer credit rating and stable outlook are unchanged.

The ratings reflect the company’s stable cash flows from management fees and strong investment performance, S&P said.

Moody’s rates CDK debt Baa3

Moody's Investors Service said it assigned a Baa3 rating to senior unsecured debt to be issued by CDK Global, Inc. as part of a spinoff from Automatic Data Processing, Inc.

The outlook is stable.

Proceeds, along with term loan borrowings, will be used to refinance bridge facilities that funded an $825 million dividend to Automatic Data and for general corporate purposes.

Post-spin, CDK's capital structure is expected to have $1 billion of funded debt and an undrawn $300 million revolver.

Moody’s said the Baa3 rating reflects CDK's leading U.S. market position in providing technology and services to the automotive retail dealer community and strong liquidity, given Moody's expectation of consistent free cash flow generation of $150 to $250 million over the next few fiscal years.

The agency believes that CDK's market share leadership provides the company with scale economies, long lasting relationships with the large dealership groups and major auto OEMs, and an entrenched suite of products that are critical to many dealerships' daily activities, which allows CDK to avoid significant performance declines in periods of depressed demand that periodically affect this industry.

S&P: CDK Global notes BBB-

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

The agency also said it assigned a BBB- rating to the company’s proposed $750 million senior unsecured notes and to the company’s existing $300 million unsecured revolving credit facility and $250 million term loan.

The outlook is stable.

The ratings reflect the company’s limited history as a standalone entity and its operations in highly competitive and concentrated markets, S&P said, partly offset by its leading market position and highly recurring revenues.

CDK’s business risk profile is considered fair, reflecting an expectation that leverage will remain at less than 2x over the next two years, the agency said.

Fitch rates TAM Finance AA-

Fitch Ratings said it assigned an AA- issuer default rating to TAM Finance Co., LLC, a new subsidiary holding company of Teachers Insurance and Annuity Association of America (TIAA) formed to hold the equity interests in Nuveen Investments, Inc. and its subsidiaries.

Fitch also said it affirmed all of the existing ratings assigned to TIAA and its affiliates.

The outlook is stable.

The rating follows news that TIAA has completed the acquisition of Nuveen Investments, Inc. in a transaction valued at $6.25 billion, Fitch said.

The AA- issuer default rating assigned to TAM Finance is based on support from TIAA, the agency said, and reflects standard notching based on a view that Nuveen is a strategically important subsidiary of TIAA.

Nuveen's strategic importance considers TIAA’s full ownership and potential synergies providing products and services in markets that are strategically important to TIAA, including the mutual fund, asset management and retirement-services markets, the agency said.

Fitch said it believes the Nuveen transaction provides a strong complement to TIAA’s existing asset management platform, significantly strengthens TIAA’s third party distribution capabilities and could potentially enhance the company’s market-leading position in the retirement market.

Key rating concerns include the integration of Nuveen, increased leverage and decreased interest coverage over the medium term, Fitch said, along with the impact of ongoing low interest rates.

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