Moody's rates NXP notes Baa3

Moody's Investors Service said it rated NXP BV's new tranches of senior unsecured notes due 2025 and 2027 and the senior unsecured notes due 2030, the green notes at Baa3. The outlook is stable.

NXP plans to use a portion of the proceeds to refinance the Senior Notes due 2021 and for general corporate purposes, which may include further debt repayment.

NXP also plans to fund eligible green projects, as defined in the bond indenture, over time in an amount equal to the net proceeds of the new green notes, the agency said.

The issuance would initially raise leverage from 2.9x debt to EBITDA (year ended Dec. 31) to about 3.6x, which would decline to 3.1x upon the redemption of the senior notes due 2021.

S&P assigns NXP notes BBB

S&P said it assigned its BBB rating to senior unsecured notes to be issued by NXP BV, a wholly owned subsidiary of NXP Semiconductors NV. Co-borrowers include NXP Funding LLC and NXP USA Inc.

The notes will be guaranteed by NXP Semiconductors. “All of our other ratings on NXP are unchanged,” S&P said in a press release.

Proceeds will be used for eligible green projects. Pending the allocation of amounts to finance those projects, the proceeds will be temporarily used, with proceeds from the company's other notes issuances totaling $1 billion, for general corporate purposes.

These may include repaying the $1.35 billion of senior unsecured notes due in June 2021, the agency said.

Moody's assigns Southwest Airlines notes Baa1

Moody's Investors Service said it assigned a Baa1 rating to Southwest Airlines Co.'s new senior unsecured notes due 2023 and 2025.

Southwest intends to use the proceeds to reduce the amount outstanding of the 364-day credit facility due March 29, 2021. There was $3.68 billion outstanding on this facility on April 27th.

“The issuance of these new notes does not affect Moody's Baa1 senior unsecured or any other of the ratings assigned to Southwest, all of which remain on review for downgrade,” the agency said in a press release.

Fitch rates Southwest bonds BBB+

Fitch Ratings said it assigned a BBB+ rating to Southwest Airlines Co.'s proposed unsecured notes offering.

The airline plans to sell unsecured bonds with maturities spread between three and five years. This offering is in addition to the $2 billion of convertible bonds and equity issuance offered yesterday.

The notes proceeds will be used to prepay a portion of the company's 364-day term loan.

Fitch gives NXP notes BBB-

Fitch Ratings said it assigned a BBB- rating to NXP BV’s proposed senior note offering.

Proceeds will be used for general corporate purposes, including potentially pre-funding upcoming debt maturities.

Fitch revised the outlook on NXP and its parent NXP Semiconductors NV to stable from positive. Fitch also affirmed NXP Semiconductors BBB- rating.

“The ratings and outlook reflect Fitch's expectation that operating performance and credit protection measures will be meaningfully weaker over the next one to two years than previously forecast, despite NXP's solid long-term operating profile, which should ultimately support positive rating momentum,” said Fitch in a press release.

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