Moody’s cuts Growthpoint view to negative

Moody's Investors Service said it affirmed all the ratings assigned to Growthpoint Properties Ltd. and changed the outlook to negative from stable.

The actions follow the weakening outlook of South Africa's credit profile, as reflected by Moody’s Dec. 15 change of South Africa's government bond rating outlook to negative from stable.

Moody’s cuts South African banks to negative

Moody's Investors Service said it affirmed the Baa2 long-term deposit and senior debt ratings and changed the corresponding rating outlook to negative from stable, of South African banks Standard Bank of South Africa Ltd., FirstRand Bank Ltd., ABSA Bank Ltd., Nedbank Ltd. and Investec Bank Ltd.

The agency also affirmed Standard Bank Group Ltd.'s Baa3 issuer rating and changed the outlook to negative from stable.

Moody’s said the outlook changes are driven primarily by: (a) the weakening credit profile of the South African government's credit profile, as captured by the Dec. 15 change in South Africa's sovereign rating (Baa2) outlook to negative from stable, as the banks' sizable holdings of sovereign debt securities link their creditworthiness to that of the national government; and, to a lesser extent, by (b) the challenges these banks face in view of weaker economic growth in South Africa, particularly in the context of reduced commodity prices, consumer affordability pressures and still-high consumer debt that will likely lead to increased loan impairments and earnings growth pressure for the banks.

Fitch lowers several Brazil companies

Fitch Ratings said it downgraded the foreign-currency issuer default ratings of several Brazilian corporations following the downgrade of the sovereign’s ratings.

Fitch downgraded the Brazilian sovereign’s foreign- and local-currency issuer default ratings to BB+ from BBB- and country ceiling to BBB- from BBB.

The outlook on the sovereign is negative.

The downgrades reflect the economy’s deeper recession than previously anticipated, continued adverse fiscal developments and the increased political uncertainty that could further undermine the government’s capacity to effectively implement fiscal measures to stabilize the growing debt burden, the agency said.

Fitch downgraded Ache Laboratorios Farmaceuticos SA’s foreign-currency issuer default rating to BBB- from BBB, along with Cielo SA’s foreign-currency issuer default rating to BBB- from BBB and Cielo USA Inc.’s notes due in 2022 to BBB- from BBB.

The agency also downgraded Globo Comunicacao e Participacoes SA’s foreign-currency issuer default rating to BBB- from BBB and senior unsecured notes due 2022 and 2025 to BBB- from BBB.

Fitch also downgraded Itaipu Binacional’s foreign-currency issuer default rating to BB+ from BBB- and local-currency issuer default rating to BB+ from BBB-.

Localiza Rent a Car SA’s foreign-currency issuer default rating was downgraded to BBB- from BBB, along with Tractebel Energia SA’s foreign-currency issuer default rating to BBB- from BBB.

Transmissora Alianca de Energia Eletrica SA’s foreign-currency issuer default rating also was downgraded to BBB- from BBB, along with Vale SA’s foreign-currency issuer default rating to BBB from BBB+ and senior unsecured debt issuance to BBB from BBB+.

Vale Overseas Ltd.’s notes guaranteed by Vale also were downgraded to BBB from BBB+ and Vale Canada Ltd.’s notes guaranteed by Vale were downgraded to BBB from BBB+.

Fitch lowers Embotelladora Andina

Fitch Ratings said it downgraded Embotelladora Andina SA’s foreign-currency and local-currency issuer default ratings to BBB+ from A-, along with its senior unsecured notes to BBB+ from A-.

The agency also said it affirmed the company's national scale ratings at AA(cl), national senior unsecured debt at AA(cl) and national equity rating at primera clase nivel 2.

The outlook is stable.

The downgrades reflect the company’s increased exposure to Brazil, Fitch said.

The ratings also consider the company’s solid operating profile, backed by strong brand recognition, diversified operations and relatively stable dynamics of the beverage industry, the agency said.

These factors have enabled Embotelladora Andina to maintain its strong performance and cash flow generation despite the weak macroeconomic environment in the region, Fitch said.

Fitch downgrades Petrobras

Fitch Ratings said it downgraded the foreign- and local-currency issuer default ratings and outstanding debt ratings for Petroleo Brasileiro SA (Petrobras) to BB+ from BBB-.

These downgrades affect about $50 billion of issued debt, including debt issued by Petrobras International Finance Co. (Pifco), Petrobras Global Finance BV and certain debt issued by Petrobras Argentina SA, which Petrobras unconditionally and irrevocably guarantees, Fitch said.

The outlook is negative.

The downgrades reflect the recent downgrade to the sovereign ratings of Brazil due to the economy's deeper recession, which is worse than previously anticipated, Fitch said.

The downgrades also consider the continued adverse fiscal developments and the increased political uncertainty that could further undermine the government's capacity to effectively implement fiscal measures to stabilize the growing debt burden, the agency said.

The negative outlook highlights continued uncertainty and downside risks related to economic, fiscal and political developments, Fitch added.

Moody’s cuts Sky Vision to B2

Moody's Investors Service said it downgraded PT MNC Sky Vision's corporate family rating to B2 from B1.

The outlook is negative. The action concludes the review for downgrade initiated on Sept. 25.

Subsequent to this action, the agency will withdraw MNC's corporate family rating for its own business reasons.

"The downgrade primarily reflects the refinancing risk associated with Sky Vision's $243 million bank loan – the bulk of which matures in November 2016 – and the rise in leverage due to its significant and unhedged foreign-currency exposure and its weakening operating performance," Moody's vice president and senior credit officer Annalisa Di Chiara said in a news release.

Fitch lifts LSR view to stable

Fitch Ratings said it revised the outlook on OJSC LSR Group to stable from negative and affirmed its issuer default rating at B.

Fitch also said it affirmed the senior unsecured rating of the outstanding bond issues at B.

The outlook revision reflects the company’s solid recent performance and the on-going stable operational dynamics, the agency said.

Although the Russian macroeconomic environment is still challenging, it seems to have stabilized as the Central Bank’s refinancing rate decreased to 11% from 17% in December 2014 and real estate prices remained stable, Fitch said.

The ratings also consider the high geographical concentration in northwestern Russia, inherent industry cyclicality and capital intensity, along with high execution risk should the company develop too many projects at the same time, the agency said.

Moody’s lifts ER-Telecom to B2/Baa1.ru

Moody's Investors Service said it upgraded ER-Telecom Holding CJSC’s corporate family rating to B2 from B3 and probability of default rating to B2-PD from B3-PD following substantive improvements to the company's financial metrics and operating performance.

The outlook is stable.

At the same time, Moody's Interfax Rating Agency upgraded the long-term national scale corporate family rating to Baa1.ru from Baa2.ru.

The upgrade reflects a material improvement in ER-Telecom's financial metrics and operating performance since the assignment of its first-time rating in 2011, Moody’s said.

The B2 rating takes into account the company's: (a) demonstrated ability to achieve geographic expansion and strong double-digit revenue growth over the past three years; (b) strong competitive position and brand recognition; (c) robust profitability and positive free cash flow generation in most of the markets in which it has operated for more than three years; (d) modern fixed-line network, which requires fairly low maintenance capex; and (e) solid liquidity and long-term debt maturity profile.

Moody’s: Delhi International Airport to negative

Moody's Investors Service said it revised the outlook on Delhi International Airport Pvt. Ltd.’s (DIAL) Ba1 corporate family rating and senior secured ratings to negative from stable.

At the same time, the ratings were affirmed.

“The announced new tariff order by Airports Economic Regulatory Authority (AERA), which will apply to DIAL over the 2016-2019 period, would lead to a decrease in annual aeronautical revenue by [about Rs. 20 billion] or around 70% from 2017 fiscal year," Moody’s Abhishek Tyagi said in a news release.

"Such decline, in the absence of countermeasures by DIAL, would lead to a weaker position relative to rating expectation. We also see ongoing uncertainty regarding future regulatory decisions, thereby raising the business risk for DIAL, and potentially leading to an overall credit profile that may not be consistent with the current Ba1 ratings."

Moody’s revises Eskom to negative

Moody's Investors Service said it changed the outlook on Eskom Holdings SOC Ltd.’s Ba1 senior unsecured ratings to negative from stable and affirmed the ratings.

The actions follow the weakening outlook of South Africa's credit profile, as reflected by Moody’s Dec. 15 change of South Africa's government bond rating outlook to negative from stable.

Moody’s: Industrial Development Corp. view negative

Moody's Investors Service said it affirmed the Baa2 foreign-currency long-term senior unsecured issuer rating for the Industrial Development Corp. of South Africa (IDC) and changed the corresponding outlook to negative from stable.

At the same time, the agency affirmed the Development Bank of Southern Africa Ltd.'s Baa2 foreign-currency long-term senior unsecured issuer rating and maintained its negative outlook.

Moody’s said the action on these two government related issuers (GRIs) follows the weakening of the South African government's credit profile, as captured by the Dec. 15 change in the sovereign rating (Baa2) outlook to negative from stable.

Moody’s: Media Nusantara view to negative

Moody's Investors Service said it confirmed PT Media Nusantara Citra's (MNC) Ba3 corporate family rating.

The outlook was changed to negative. The action concludes the review for downgrade initiated on Sept. 25.

Subsequent to this action, Moody's will withdraw the company’s corporate family rating for its own business reasons.

"The change in outlook to negative primarily reflects our expectations of slowing earnings growth against the backdrop of soft advertising spend in Indonesia. Despite the slower growth, we believe higher dividends could be extracted to support BHIT's debt-service costs, thus weakening MNC's free cash flow generation to levels below our previous expectations," Moody's vice president and senior credit officer Annalisa Di Chiara said in a news release.

"MNC also announced a sizeable share buyback program which evidences a more aggressive financial policy than previously expected, the timing and funding of which also remains unclear."

Moody’s changes Transnet to negative

Moody's Investors Service said it affirmed all the ratings assigned to Transnet SOC Ltd. and changed the outlook to negative from stable.

Moody’s said the actions follow the weakening outlook of South Africa's credit profile, as reflected by the Dec. 15 change of South Africa's government bond rating outlook to negative from stable.

Fitch rates Indonesia Infrastructure AAA(idn)

Fitch Ratings said it published PT Indonesia Infrastructure Finance’s national long-term rating at AAA(idn).

The outlook is stable.

The AAA(idn) ratings denote the highest rating assigned by the agency on Indonesia’s national rating scale, Fitch said.

This rating is assigned to issuers or obligations with the lowest expectation of default risk relative to all other issuers or obligations in the same country, the agency said.

The company is a credit-linked public-sector entity and plays an important role in the development of Indonesia’s infrastructure, Fitch said.

The rating also reflects its strategic importance, strong public-sector and supranational owners, the agency said, along with tight monitoring by the Ministry of Finance.

Fitch rates Rumo BB-

Fitch Ratings said it assigned a first-time rating of BB- to the foreign- and local-currency issuer default ratings on Rumo Logistica Operadora Multimodal SA, along with an A(bra) national scale long-term rating.

The outlook is negative.

The ratings reflect the company's strongly leveraged capital structure, coupled with predictable cash flow generation through the economic cycle and solid business position as a railroad and logistic operator in the Brazilian infrastructure industry, Fitch said.

Rumo is part of the Cosan Group, which is viewed as a credit positive, the agency said, and provides reasonable financial flexibility.

The negative outlook reflects the challenges Rumo faces to improve its currently aggressive capital structure and to finance a huge capital expenditure plan amid Brazil's deteriorated macroeconomic and debt environment, Fitch said.

S&P: BL Capital re-tap BBB-

Standard & Poor’s said it assigned a BBB- long-term foreign-currency issue rating to BL Capital Holdings Ltd.’s proposed re-tap issue of $30 million fixed-rate senior unsecured bonds due in 2018.

The agency also said it assigned a cnA- long-term Greater China regional scale rating to the re-tap issue, which is guaranteed by China United SME Guarantee Corp.

The company proposed the additional $30 million bonds as a re-tap to its existing $200 million bonds due 2018, S&P said.

The ratings on the re-tap are equalized with the counterparty credit rating on China United SME to reflect that the guarantee is irrevocable, unconditional and timely, the agency said, and therefore qualifies for rating-substitution treatment.

Moody’s drops Buenaventura to Ba1

Moody's Investors Service said it downgraded Compania de Minas Buenaventura SAA's issuer rating to Ba1 from Baa3 and placed the rating on review for further downgrade.

Moody’s said the downgrade incorporates the deterioration in market fundamentals for precious and base metals due to pressuring commodity prices and weakening demand, especially in China.

The company's credit metrics will continue to be challenged and weak market fundamentals are already reflected in lower margins (adjusted EBIT margins of 8½% in the LTM ended September 2015) and weaker interest coverage (measured by adjusted EBIT/interest expense), dropping to 1.8 times in the LTM ended September 2015 from levels above 7 times until 2014.

Moody’s drops Hilong CFR to Ba3

Moody's Investors Service said it downgraded Hilong Holding Ltd.’s corporate family rating to Ba3 from Ba2.

The outlook is negative.

"The rating downgrade and negative outlook reflect our concern that Hilong's credit metrics and liquidity position will be negatively affected in the next 12 to 18 months by the sustained low oil price, which has dropped to a multi-year low in December," Moody's vice president and senior credit officer Kaven Tsang said in a news release.

The action also follows the sharp reduction in Moody's oil price assumptions in light of continuing oversupply in the global oil markets. The agency now assumes the Brent crude oil price to average $43 per barrel and $48 per barrel in 2016 and 2017, respectively, a $10 per barrel and $12 per barrel reduction from its previous scenario.

Moody’s drops MNC Investama, notes

Moody's Investors Service said it downgraded the corporate family rating of PT MNC Investama Tbk. (BHIT) to B2 from B1 and the bond rating of the $365 million senior secured notes issued by wholly owned subsidiary Ottawa Holdings Pte. Ltd., and guaranteed by MNC Investama, to B3 from B2.

The outlook is negative.

Through its 50.24% stake in Global Mediacom, MNC Investama has a significant stake in media operating companies PT Media Nusantara Citra Tbk. and PT MNC Sky Vision Tbk.

"The rating action reflects the deterioration in BHIT's financial profile, as evidenced by its rising leverage and weaker interest coverage metrics, as well the near-term refinancing risk associated with the U.S. dollar-denominated loan maturing in 2016 at Sky Vision, one of its media operating subsidiaries," Moody's vice president and senior credit officer Annalisa Di Chiara said in a news release.

Moody’s reviews Mozambique

Moody's Investors Service said it placed Mozambique's B2 government issuer rating on review for downgrade.

The review was driven by increased external pressures on the country's external position, its currency and its foreign exchange reserves.

The review will focus on the risk that these pressures intensify and cause further deterioration in the government's and country's external debt metrics.

Moody's also placed under review the B2 backed senior unsecured foreign-currency rating of Mozambique Ematum Finance 2020 BV (which takes the form of a $850 million loan participation note of which $774 million is outstanding, issued in September 2013 by a special purpose vehicle of the Mozambican fishing company Ematum). This change mirrors the review of the government of Mozambique's rating.

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