Moody’s assigns Pemex notes Ba2

Moody’s Investors Service said it assigned a Ba2 rating to Petroleos Mexicanos’ (Pemex) proposed notes maturing in 2025. The company’s ratings, including its Ba2 corporate family rating and negative outlook, are unchanged.

The company will use the proceeds for general corporate purposes, including refinancing indebtedness.

The notes will be guaranteed by Pemex’s operating subsidiaries, Pemex Exploracion y Produccion, Pemex Transformacion Industrial and Pemex Logistica.

S&P rates Pemex bonds BBB

S&P said it assigned its BBB issue-level rating to Petroleos Mexicanos’ (Pemex) proposed benchmark dollar bonds due 2025.

The offering is part of the company’s liability management plan and won’t increase the company’s net debt, the agency said.

Proceeds are expected to be used for general corporate purposes, including the repayment of debt.

“The notes benefit from guarantees from Pemex Exploracion y Produccion, Pemex Transformacion Industrial, and Pemex Logistica, all of which also currently guarantee all of Pemex’s outstanding notes,” S&P said in a press release.

Fitch cuts, ups RussNeft

Fitch Ratings said it downgraded RussNeft’s long-term issuer default rating to RD from C on completion of the restructuring of the 2020 bank debt maturities. Fitch then upgraded the rating to CC because repayment risk is still probable.

CQUR Bank LLC, which is RussNeft’s largest creditor, agreed to amend the 2020 payment schedule of its $1.172 billion loan by relieving it of 2020 principal payments of $91 million, including already missed payments, and adding them to the balloon payment due in 2026, the agency said.

“The loan restructuring represents a distressed debt exchange (DDE) as defined by our criteria. The restructuring only marginally improves RussNeft’s weak liquidity position and we believe that under our base-case assumptions the liquidity event appears probable in the next 12 months, which supports the CC rating,” Fitch said in a press release.

“We understand from management that RussNeft will continue to re-negotiate the loan. With principal repayments resuming in 2021, we project RussNeft to have very high repayment risk, generate negative free cash flow (FCF) in 2020-2021, and its leverage is high. RussNeft’s ability to attract external funding is constrained by the loan agreement with its major creditor,” Fitch said.

S&P revises Tamar Bond view to negative

S&P said it revised the outlook for Delek & Avner (Tamar Bond) Ltd.’s senior secured bonds to negative from stable and affirmed their BBB- ratings.

“With the nearby Leviathan field ramping up, we believe changing market dynamics are increasingly exposing the Tamar project to competition and that the issuer’s market risk exposure is rising, which may result in a weaker business risk profile,” S&P said in a press release.

The outlook reflects a one-in-three likelihood of a downgrade in the next 24 months if increasing competitive pressures result in a greater-than-expected deterioration of the Tamar project’s cash flow generation, S&P said.

Moody’s assigns Bahrain sukuk B2

Moody’s Investors Service said it assigned a B2 senior unsecured rating to the $1 billion seven-year sukuk issued on Sept. 16, CBB International Sukuk Programme Co. SPC.

The issuer is owned by the Central Bank of Bahrain. In Moody’s view, the bank’s debt is ultimately the responsibility of the B2-rated government of Bahrain, the agency said.

Fitch rates ICBC notes AAA(tha)

Fitch Ratings said it assigned ICBC (Thai) Leasing Co. Ltd.’s upcoming long-term senior unsecured notes a national long-term rating of AAA(tha).

The senior notes are rated at the same level as the company’s national long-term rating of AAA(tha). “This is in line with Fitch’s criteria, as the senior notes represent unsecured and unsubordinated obligations of the issuer,” the agency said in a press release.

The proceeds will be used for refinancing and general operations.

Moody’s rates MGM notes Ba3

Moody’s Investors Service said it assigned a Ba3 rating to MGM Resorts International’s proposed $500 million of senior unsecured notes.

Proceeds will be used for general corporate purposes, including refinancing debt.

“The additional liquidity is beneficial, improving financial flexibility to weather the coronavirus pandemic and pushing out the company’s maturity profile,” Moody’s said in a press release.

The company’s Ba3 corporate family rating, Ba3-PD probability of default rating and Ba3 rated senior unsecured notes are unchanged. The Ba3 rating on the senior unsecured notes of MGM China Holdings Ltd. is unchanged. MGM’s speculative-grade liquidity rating of SGL-2 is unchanged.

The outlook remains negative.

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