Moody’s cuts Sunac China to negative

Moody's Investors Service said it changed the outlook on Sunac China Holdings Ltd.’s B1 corporate family rating and the B2 senior unsecured debt ratings on its $500 million notes due 2018 and $400 million notes due 2019 to negative from stable.

At the same time, the agency affirmed the ratings.

"The change in the rating outlook to negative reflects our expectation that Sunac's profit margins and credit metrics will remain weak over the next 12-18 months," Moody's vice president and senior credit officer Franco Leung said in a news release.

Fitch downgrades BR Properties

Fitch Ratings said it downgraded BR Properties SA’s foreign-currency and local-currency issuer default ratings to BB- from BB.

The agency also said it downgraded the company’s national scale long-term rating to A+(bra) from AA-(bra).

The outlook is stable.

The downgrades reflect the company’s weaker cash-flow generation capacity and asset base due to the negative business environment and the relevant sale of assets, which should result in an increase in leverage and lower interest coverage ratios, Fitch said.

The agency said it expects that the lower scale and less diversified portfolio of properties following the sale of assets will not be counterbalanced by a significant leverage reduction, the agency said.

Net leverage is expected to range between 5x and 6x in 2016 and 2017, the agency said. Its liquidity is healthy and represents an important rating consideration, Fitch said.

Moody’s drops Indika Energy, notes to Caa1

Moody's Investors Service said it downgraded the corporate family rating of Indika Energy Tbk. to Caa1 from B3.

At the same time, the agency downgraded the ratings on the $171 million notes due 2018 and issued by Indo Energy Finance BV, as well as the ratings on the $500 million notes due 2023 and issued by Indo Energy Finance II BV, to Caa1 from B3.

The two bond issuing entities are wholly-owned subsidiaries of Indika and both notes are unconditionally guaranteed by Indika.

The outlook is negative.

The actions conclude the review initiated on Jan. 22 when Moody’s placed the ratings on review for downgrade, reflecting its effort to recalibrate ratings in the mining industry to align with the fundamental shift in the credit conditions faced by the global mining sector.

"The downgrade of Indika's CFR to Caa1 reflects the company's elevated leverage, driven largely by the impact of weak thermal coal prices across Indika's businesses," Moody's vice president and senior analyst Brian Grieser said in a news release.

"The downgrade also incorporates our view that Indika's cash flows will diminish materially in 2017."

Moody’s lowers Vinacomin

Moody's Investors Service said it downgraded corporate family rating of Vinacomin Holding Corp. Ltd. to B3 from B2.

The outlook is stable.

This action concludes the review initiated on Jan. 22, when Moody's placed the B2 rating on review for downgrade, reflecting its effort to recalibrate ratings in the mining portfolio to align with the fundamental shift in the credit conditions of the global mining sector.

"The downgrade to B3 reflects Vinacomin's ongoing dependence on debt-funded capital expenditures, which raised its leverage to around 5.0x at the end of 2015 and will drive a further increase in leverage during 2016," Moody's vice president and senior analyst Brian Grieser said in a news release.

Moody’s downgrades CEZ, notes to Baa1

Moody's Investors Service said it downgraded CEZ, AS’ senior unsecured ratings and the rating on the notes issued by CEZ MH BV which are guaranteed by CEZ, to Baa1 from A3.

Concurrently, the agency downgraded the long-term provisional rating on CEZ's euro medium-term note program to provisional Baa1 from provisional A3.

The outlook is stable.

The action concludes the review initiated on Feb. 12.

Moody’s said the downgrade reflects CEZ's exposure to an ongoing weak power price environment and an expectation that the company's credit metrics will deteriorate from current levels in the next two to three years.

S&P lowers China Oilfield

Standard & Poor’s said it lowered the long-term corporate credit rating and senior unsecured debt rating on China Oilfield Services Ltd. to BBB+ from A-.

The agency also said it lowered the company’s long-term Greater China regional scale rating to cnA+ from cnAA-.

The outlook is stable.

The downgrades reflect an expectation that China Oilfield’s financial performance is expected to weaken over the next two years, S&P said.

The company’s 2015 results were weaker than expected and the current sluggishness in the offshore oilfield services industry will compress day rates and utilization, the agency added.

Both of these factors will result in the company’s credit metrics continuing to deteriorate in 2016, S&P said.

Fitch downgrades Cyrela

Fitch Ratings said it downgraded the foreign-currency and local-currency issuer default ratings of Cyrela Commercial Properties SA Empreendimentos e Participacoes to B+ from BB.

The agency also said it downgraded the company’s national scale long-term rating to A-(bra) from AA-(bra).

The outlook is negative.

The downgrades reflect the company’s weaker cash-flow generation, pressured by highly unfavorable macroeconomic conditions and increased operational cash burn due to higher financial expenses, Fitch said.

Net leverage is high and should remain at more than 7x at least in the next two years, the agency said.

The company’s liquidity is satisfactory, but Fitch said it expects higher cash burn in 2016 and 2017, Fitch said.

Moody’s lowers Minera Frisco to B3/B1.mx

Moody's de Mexico said it downgraded the ratings of Minera Frisco SAB de CV to B3/B1.mx from B2/Ba1.mx.

The outlook is stable.

The actions conclude the review initiated on Jan. 21.

Moody’s said these actions reflect its perception of increased credit risk for the mining sector, and also an effort to align ratings with the fundamental shift in the credit conditions of the global mining sector.

The actions on Minera Frisco incorporate a deep deterioration in credit conditions for the global mining industry, with sharp price declines over the past year. Moody's believes that this downturn will be deeper and longer, and represent an unprecedented shift for the mining industry.

S&P downgrades Mingfa

Standard & Poor’s said it lowered the long-term corporate credit rating on Mingfa Group (International) Co. Ltd. to CCC+ from B- and the long-term Greater China regional scale rating on the company to cnCCC+ from cnB-.

S&P also said it lowered the long-term rating on Mingfa’s senior unsecured notes to CCC from CCC+ and Greater China regional scale rating on the notes to cnCCC from cnCCC+.

The ratings also were placed on CreditWatch with negative implications.

The downgrades reflect Mingfa’s heightened refinancing and liquidity risks, the agency said.

The downgrades also follow auditor Pricewaterhouse Coopers’ inability to opine on some of the company’s recent transactions with certain potentially related parties, S&P said.

The situation could dampen investor confidence, the agency said, and raises uncertainty about Mingfa’s credit standing in the market.

S&P lowers Sunshine 100

Standard & Poor’s said it lowered the long-term corporate credit rating on Sunshine 100 China Holdings Ltd. to B- from B.

The agency also said it lowered the rating on the company’s outstanding senior unsecured notes to CCC+ from B-, along with its long-term Greater China regional scale rating to cnB- from cnBB- and senior unsecured notes rating to cnCCC+ from cnB+.

The outlook is negative.

The downgrades were due to the company’s tight liquidity, heightened refinancing risk and a substantial deterioration in its leverage and interest coverage without material improvement expected, S&P said.

Sunshine’s operating cash flow also is expected to weaken in the next 12 months, the agency added.

Onshore bond market conditions are currently favorable to developers, S&P said, but it remains to be seen whether smaller developers like Sunshine will continue to have good access to meet demand in full and in a timely manner.

S&P lifts Metrogas to positive

Standard & Poor’s said it revised the outlook on Metrogas SA to positive from stable.

The agency also said it affirmed the company’s CCC corporate credit and issue-level ratings.

The outlook revision follows the recent request of Argentina’s department of energy and mines for the natural gas industry regulator (Enargas) to revise the rate-setting process within the next 12 months, S&P said.

Metrogas also defined terms and conditions for the 12-month transition period and provide new rate charts until the regulator completes the process, the agency said.

The natural gas rates increased, so Metrogas will have to comply with mandatory investments and service-quality targets during the transition period while recovering the higher operating costs due to inflation, S&P said.

But the new price-setting process could improve the company’s ability to recover its fixed- and variable-operating costs, the agency said, and capital expenditures.

Fitch upgrades Shimao Property

Fitch Ratings said it upgraded Shimao Property Holdings Ltd.’s long-term issuer default rating to BBB- from BB+.

Fitch also said it upgraded Shimao’s senior unsecured rating and the ratings on its outstanding notes to BBB- from BB+.

The upgraded debt ratings to BBB- include the company’s $800 million 6 5/8% senior unsecured notes due 2020, $600 million 8 1/8% senior unsecured notes due 2021 and $1.1 billion 8 3/8% senior unsecured notes due 2022.

The outlook is stable.

The upgrades reflect a view that Shimao’s business has reached stability with healthy EBITDA margin of 23% to 25% and a measured pace of land replenishment, Fitch said.

The ratings also are supported by the home builder’s strong execution track record and leadership in key regions, the agency said.

Moody’s revises Hydoo to negative

Moody's Investors Service said it revised the outlook on Hydoo International Holding Ltd.’s B2 corporate family rating and B3 senior unsecured rating to negative from stable.

At the same time, the agency affirmed the ratings.

"The change in outlook to negative reflects our concern over Hydoo's increased liquidity risk, due to its consistently weak contracted sales against the backdrop of China's economic slowdown," Moody's vice president and senior credit officer Kaven Tsang said in a news release.

Moody’s drops Rivoli Re to negative

Moody's Investors Service said it affirmed Rivoli Reinsurance Co.’s (Rivoli Re) A2 global local currency insurance financial strength rating and changed its outlook to negative from stable.

Rivoli Re is the captive reinsurance subsidiary of America Movil, SAB de CV (A2 senior unsecured, negative).

The change in Rivoli Re's outlook follows Moody's April 1 change in America Movil's outlook to negatie.

Moody’s rates CK Hutchison notes A3

Moody's Investors Service said it assigned an A3 rating to the euro-denominated seven-year and 12-year senior unsecured notes to be issued by CK Hutchison Finance (16) Ltd. (unrated). All notes will be irrevocably and unconditionally guaranteed by CK Hutchison Holdings Ltd. (CKHH, A3 stable).

The outlook is stable.

"We expect CKHH will use the bond proceeds primarily to refinance its debt due through 2016, and that the issuance thus will be leverage neutral," Moody's vice president and senior analyst Joe Morrison said in a news release.

CK Hutchison’s A3 rating continues to be supported by its broad degree of business and geographical diversification, and the fact that most of its non-telecommunications businesses command strong competitive positions in their markets and generate stable cash flow, the agency said. The company also maintains a strong liquidity profile.

S&P: CK Hutchison notes A-

Standard & Poor’s said it assigned an A- long-term issue rating and cnAA long-term Greater China regional scale rating to euro-denominated senior unsecured notes by CK Hutchison Finance (16) Ltd.

CK Hutchison Holdings Ltd. guarantees the notes, S&P said.

The proceeds will be used for refinancing existing borrowings, including euro bonds due in 2016 and general corporate purposes, the agency said.

The proposed issue is in line with an expectation that the group will continue to extend its debt-maturity profile and fund the debt before their maturities, S&P said.

The ratings reflect the group’s good cash flows from diverse businesses with a good- to strong-competitive position, good record of divesting assets to supplement cash generation and strong liability management and financial flexibility, the agency said.

CK Hutchison’s consistent earnings and strong cash flow to offset its high investment appetite, S&P said.

Fitch: CK Hutchison notes A-

Fitch Ratings said it assigned an expected rating of A- to CK Hutchison Finance (16) Ltd.’s proposed euro-denominated guaranteed notes.

The proposed notes will be unconditionally and irrevocably guaranteed by CK Hutchison Holdings Ltd. and rank pari passu with the company’s other senior unsecured borrowings.

The notes are issued mainly for refinancing purposes, the agency said.

The ratings reflect the company’s diversified business and stable cash flow and geographical diversification, Fitch said.

The ratings also consider the capital intensive nature of the company’s infrastructure, ports and telecommunications businesses, the agency said.

Fitch rates Sibur bonds BB+

Fitch Ratings said it assigned a local-currency senior unsecured rating of BB+ to Sibur Holding’s recent issue of RUB 10 billion 10-year ruble bonds.

Fitch also said it affirmed Sibur’s long-term issuer default rating at BB+ with negative outlook, short-term foreign-currency issuer default rating at B and Sibur Securities Ltd.’s five-year $1 billion guaranteed eurobonds due 2018 at BB+.

Sibur’s $1 billion eurobonds due 2018 and new RUB 10 billion ruble bonds rank pari passu with the group’s senior unsecured debt and are only structurally subordinated to Sibur’s debt at its subsidiaries, largely represented by debt at Tobolsk Polymer and ZapSibNefteKhim (ZapSib-2), the agency said.

The company’s structurally senior debt is expected to increase with further utilization of ZapSib-2 project debt funding, but remain well below 2x to 2.5x threshold of prior-ranking debt-to-EBITDA for notching unsecured debt rating until the bonds mature.

The ratings are constrained by higher-than-average systemic risks associated with the Russian business and jurisdictional environment, Fitch added.

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