S&P downgrades Apoteket

S&P said it lowered the issuer credit rating on Apoteket to A- from A.

Apoteket reported weaker operating performance than anticipated in 2018 with reported EBITDA declining 21% year-over-year, the agency said.

The company is expected to have difficulties improving its adjusted EBITDA margin at higher than 5% over the next two years and maintain its stable, market-leading position amid increasing competition in Swedish pharmaceutical retail and continuing necessary investments in e-commerce, S&P said.

The downgrades also reflect Apoteket's an expectation that the company's margins will remain under pressure in the coming years at about 5% or less, the agency added.

It also encompasses the steadily increasing competition in the Swedish pharmaceutical retail market, challenging Apoteket's leading position, S&P said.

Moody's lowers Dayton Power view to stable

Moody's Investors Service said it affirmed DPL Inc.'s Ba1 senior unsecured rating and Dayton Power & Light Co.'s Baa2 issuer rating and A3 first mortgage bond.

The agency also said it changed the outlooks on both companies to stable from positive.

Heightened uncertainty regarding Dayton Power's ability to collect its distribution modernization rider (DMR) until the end of its third electric security plan no longer justifies the maintenance of a positive outlook, Moody's said.

This uncertainty has arisen after the Ohio Supreme Court last week ruled that the Public Utilities Commission of Ohio had improperly authorized the neighboring utility subsidiaries of FirstEnergy Corp. to collect the DMR charges, ending their collection from ratepayers, the agency said.

The utility's regulatory capital structure has further benefited from the company's commitment not to upstream any cash flows in the form of dividends or tax payments to its parent company, Moody's said.

S&P lifts Vela Energy, Solaben views to positive

S&P said it revised the outlooks on Vela Energy Finance SA's and Solaben Luxembourg SA's senior secured bonds to positive from stable and affirmed the BBB long-term issue ratings on the bonds.

The Spanish government has commenced the procedure to propose a law that remuneration applicable to certain regulated solar energy projects, including Vela Energy Finance and Solaben, will either remain unchanged until 2031, or decrease slightly to 7.09% until 2025, the agency said.

In both scenarios, the debt service coverage ratios for Vela Energy and Solaben would strengthen and support a higher rating because debt repayments decline from 2020, S&P said.

The positive outlook reflects an expectation that a revision of the remuneration in line with the current proposal will lead to an upgrade, the agency said.

Moody's lifts Emera view to stable

Moody's Investors Service said it affirmed Emera Inc.'s Baa3 issuer and senior unsecured ratings, as well as Emera US Finance LP's Baa3 backed senior unsecured rating.

The outlook was changed to stable from negative.

Emera US Finance is a financing subsidiary of Emera and its senior unsecured notes are fully and unconditionally guaranteed, on a joint and several basis, by Emera and Emera US Holdings Inc., Moody's said.

As a result of the guarantee, Emera US Finance's rating is directly correlated to Emera's credit profile and rating, the agency said.

The ratings reflect Emera's actions over the last two years to pay down holding company debt, which strengthen the company's business risk profile, Moody's said.

Emera also benefits from a low risk business profile as a holding company of regulated utilities with some geographic and regulatory diversity, the agency said.

Moody's lifts Martin Marietta view to stable

Moody's Investors Service said it affirmed the Baa3 senior unsecured rating, provisional Baa3 senior unsecured shelf rating and P-3 commercial-paper rating on Martin Marietta Materials, Inc.

The outlook was revised to stable from negative.

The outlook revision considers the improvement in the company's leverage following the Bluegrass acquisition in 2018, Moody's said.

Despite an unseasonably wet 2018 that resulted in significant delays in construction projects, Martin's debt-to-EBITDA ratio declined to 3.1x as of March 31, 2019 from 3.4x at the end of 2017, the agency said.

The stable outlook also considers an expectation of further de-leveraging over the next 12 months through a combination of EBITDA growth and debt repayments, Moody's said.

The ratings are supported by the company's position as a leading aggregates producer in the U.S. and a leading cement producer in Texas, the agency said.

Moody's upgrades Bio-Rad

Moody's Investors Service said it upgraded the unsecured rating of Bio-Rad Laboratories, Inc. to Baa2 from Baa3.

The outlook was changed to stable from positive.

The upgrades reflect the recent improvement in Bio-Rad's operating performance, including solid profit margin expansion and progress made in its multi-year ERP implementation, Moody's said.

The upgrades also consider the company's consistently strong credit metrics, the agency said.

The company's debt-to-EBITDA was 1.8x as of March 31, 2019, Moody's said.

The upgrades also recognize an expectation that even if Bio-Rad were to pursue a larger acquisition, it would maintain its debt-to-EBITDA lower than 3x, the agency said.

S&P upgrades Central Maine

S&P said it raised the issuer credit rating on Central Maine Power Co. to A from A-.

The agency also said it raised the ratings on the company's senior unsecured debt to A from A- and short-term rating to A-1 from A-2.

The outlook is stable.

The stable outlook reflects an expectation that the company will sustain financial measures at the higher end of the range for its financial risk profile category by growing organically through investments in its distribution and Federal Energy Regulatory Commission (FERC)-regulated transmission business, S&P said.

The agency said it expects financial measures to consistently reflect funds from operations to debt of greater than 20%.

The upgrades reflect an expectation for sustained strength in the company's financial measures, reflecting a modest improvement in the company's financial measures under the updated criteria as well as the company's steady growth through its lower-risk electric transmission and distribution operations, S&P said.

The stable outlook reflects an expectation that the company will continue to sustain financial measures at the higher end of the range for its financial risk profile category by growing organically, the agency said.

S&P puts Capgemini on watch

S&P said it placing the BBB+ long-term ratings on Capgemini SE on CreditWatch with negative implications, reflecting a likely one-notch downgrade once the transaction is completed in late 2019 or early 2020.

The agency said it does not exclude the possibility of a two-notch downgrade, but now believes that is less likely based on a of the group's financial policy targets.

The CreditWatch placement follows news that Capgemini will finance most of the €5.4 billion with new debt and cash of about €1 billion, S&P said.

As a result, the agency said it anticipates Capgemini's credit metrics will weaken post transaction with an adjusted debt-to-EBITDA ratio deteriorating to about 3x to 3.5x through 2020, before improving to 3x or lower in 2021.

The consolidation of Altran will increase revenue by about 23%, resulting in 2019 pro forma revenue of about €17 billion for the enlarged Capgemini group, S&P said.

Through its enhanced scale and broad services portfolio, the combined group will benefit from increased access to decision-makers from key accounts in dynamic industries, the agency said.

S&P said it intends to resolve the CreditWatch when the transaction closes and after assessing the enlarged group's capital structure, cash flow prospects and management's plan to deleverage and integrate Altran.

S&P: Western Midstream on developing watch

S&P said it revised the CreditWatch implications on all of the ratings on Western Midstream Operating LP to developing from positive given uncertainty around potential ownership and control.

The agency said it previously believed Occidental Petroleum Corp. would retain a significant interest in Western Midstream when its pending acquisition of Western's parent, Anadarko Petroleum, closes in third quarter of 2019.

But now, the agency said there is the uncertainty about the eventual controlling owner of Western, along with the expectation of Western's strategic importance and its financial policy.

S&P said it now believes Occidental may explore the sale of a significant limited partnership interest and the general partnership interest in Western Midstream.

Moody's rates Engie notes Baa2

Moody's Investors Service said it assigned a Baa2 long-term rating to the deeply subordinated fixed-rate resettable notes to be issued by Engie SA.

The outlook is stable.

The size and completion of the hybrid issue is subject to market conditions, Moody's said.

The rating assigned to the hybrid is two notches lower than Engie's senior unsecured rating of A3, reflecting the features of the hybrid, the agency said.

It is undated, deeply subordinated and Engie can opt to defer coupons on a cumulative basis, Moody's said.

The ratings are underpinned by the company's scale and diversification, which are reflected in its leading business positions across the energy value chain in many different markets, the agency said.

These factors limit earnings volatility and, in combination with the progress made by the group under its cost-reduction program, should continue to offset the negative effects of nuclear outages, underpinning EBITDA, Moody's said.

S&P rates Engie securities BBB

S&P said it assigned a BBB long-term issue rating to the proposed perpetual, optionally deferrable and subordinated hybrid capital securities to be issued by Engie SA.

The amount of the hybrid remains subject to market conditions, but may reach €750 million, the agency explained.

The proceeds will be used to replace part or all of the existing €750 million hybrid issued in 2013 with the first call date in July 2021, S&P said.

The agency said it considers the proposed security to have intermediate equity content until its first reset date because it meets the criteria in terms of subordination, permanence and deferability at the company's discretion during this period.

This is because the agency said it believes Engie has time to manage the remaining amount before the first call date in 2021, S&P said.

The agency said it understands the proceeds will be received on or before the day the buyback is settled.

Moody's rates Standard Chartered Bank A1

Moody's Investors Service said it assigned definitive deposit, issuer and counterparty risk ratings of A1/P-1 to Standard Chartered Bank AG.

Moody's also said it downgraded the baseline credit assessment to Baa2 from Baa1 and affirmed the adjusted baseline credit assessment of Baa1 and counterparty risk assessments of A1(cr)/P-1(cr) of SCB AG.

The outlook is stable.

The ratings reflect the bank's relationship with its U.K.-domiciled parent, Standard Chartered Bank, Moody's said.

SCB AG is a wholly owned subsidiary of Standard Chartered Bank in Germany and is expected to become an important legal entity for the group, providing euro clearing services to Standard Chartered group's clients, the agency explained.

SCB AG will be a small entity, but designed to play an important role in the group's European corporate and investment banking business after the United Kingdom's expected exit from the European Union, Moody's said.

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