Asciano break-up ratings risk warning

November 12, 2015roymorgansocial Leave a comment

Original article by Jenny Wiggins
The Australian Financial Review – Page: 23 : 12-Nov-15

Ports and rail group Asciano currently has a credit rating of "Baa2" with a negative outlook from Moody’s Investors Service. The ratings agency has indicated that Asciano’s credit rating could be downgraded if a proposed takeover and break-up of the group proceeds without a reduction in its debt. The Qube Holdings-led consortium is offering $A9.25 per share, and is hoping to trump the bid from Brookfield Infrastructure Partners.

CORPORATES
ASCIANO LIMITED – ASX AIO, MOODY’S INVESTORS SERVICE INCORPORATED, QUBE HOLDINGS LIMITED – ASX QUB, BROOKFIELD INFRASTRUCTURE PARTNERS LP, CANADA PENSION PLAN INVESTMENT BOARD, GLOBAL INFRASTRUCTURE PARTNERS, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, WESTBOURNE CREDIT MANAGEMENT, McMILLAN SHAKESPEARE LIMITED – ASX MMS, LIFESTYLE COMMUNITIES LIMITED – ASX LIC, INSTITUTIONAL SHAREHOLDER SERVICES INCORPORATED, MACQUARIE WEALTH MANAGEMENT, AURIZON HOLDINGS LIMITED – ASX AZJ

Woolies credit outlook cut, rating questioned

November 6, 2015roymorgansocial Leave a comment

Original article by Sue Mitchell
The Australian Financial Review – Page: 15 : 6-Nov-15

Moody’s Investors Service has maintained Woolworths’ "Baa1" credit rating, although the retailer’s credit outlook has been downgraded from "stable" to "negative". Ian Chitterer of Moody’s attributes the move to factors such as disappointing sales for the first quarter of 2015-16 and Woolworths’ third earnings downgrade in less than a year. He has also expressed concern about the uncertainty concerning the timeframe for appointing a new CEO.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, MOODY’S INVESTORS SERVICE INCORPORATED, STANDARD AND POOR’S CORPORATION, BIG W DISCOUNT STORES, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Woolworths dividend and rating at risk

November 4, 2015roymorgansocial Leave a comment

Original article by Sue Mitchell
The Australian Financial Review – Page: 17 : 4-Nov-15

Ian Chitterer of ratings agency Moody’s says Australian-listed Woolworths needs to take action to arrest a decline in same-store sales. Chitterer will meet with the retailer’s executives shortly, and he says Woolworths may need to consider measures such as asset sales and a reduction in its dividend payout. Moody’s downgraded Woolworths’ credit rating in August 2015, while Standard & Poor’s did so in late October.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, MOODY’S INVESTORS SERVICE INCORPORATED, STANDARD AND POOR’S CORPORATION, CITIGROUP PTY LTD, BIG W DISCOUNT STORES, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, TESCO PLC

Fitch revises ratings for BHP, Rio

June 12, 2015roymorgansocial Leave a comment

Original article by Rose Powell
The Australian Financial Review – Page: 21 : 12-Jun-15

Fitch Ratings has maintained BHP Billiton’s "A+" credit rating, but the resources group’s long-term issuer rating has been downgraded from "stable" to "negative". The firm has cited factors such as a likely decline in BHP’s free cash flow following the demerger of South32. Meanwhile, Fitch has retained Rio Tinto’s "A+" rating and upgraded the group’s outlook from "negative" to
"stable". Fitch expects the price of iron ore to average $US50 per tonne in 2015-16.

CORPORATES
FITCH RATINGS LIMITED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, SOUTH32 LIMITED – ASX S32, ANGLO AMERICAN PLC

Santos slumps after rating downgrade

December 10, 2014roymorgansocial Leave a comment

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 10-Dec-14

Investors have responded bearishly to a move by Standard & Poor’s to reduce the credit rating of Australian-listed Santos from "BBB+" to "BBB". Santos shares closed $A0.60 lower at $A7.70 on 9 December 2014, after reaching an intra-day low of $A7.46. The oil and gas producer has indicated that the ratings downgrade will have no impact on its finances, and notes that it has a healthy balance sheet

CORPORATES
SANTOS LIMITED – ASX STO, STANDARD AND POOR’S (AUSTRALIA) PTY LTD, JP MORGAN AUSTRALIA LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

S&P draws line in the sand on national debt

July 30, 2014roymorgansocial 1 Comment

Original article by Adam Creighton
The Australian – Page: 21 : 30-Jul-14

Credit ratings agency Standard & Poor’s (S&P) has issued its annual ratings review for 2014, voicing some concerns about the Australian economy. It noted the reliance on China’s growth, the sizeable current account deficit and negative sentiment among investor as factors, as well as the potential for a "bubble" to emerge in the residential real estate market. S&P has also warned state and federal governments that in order to retain the nation’s "AAA" status their total net debt must not exceed 30% of GDP

CORPORATES
STANDARD AND POOR’S (AUSTRALIA) PTY LTD

Hywood defends strategy amid online disruption

July 2, 2014roymorgansocial Leave a comment

Original article by Stefanie Balogh
The Australian – Page: 23 : 2-Jul-14

The audience at an event staged at the Australian National University by Fairfax Media’s "The Australian Financial Review" on 1 July 2014 heard from Greg Hywood. The Fairfax CEO argued that the recent closing of newspaper printing plants in Melbourne and Sydney was an example of positive digital disruption, as more readers can now be reached via smartphone apps and web pages with the same content at a fraction of the capital cost. Hywood says the move had effectively saved Fairfax $A599.2m. The outlook for its long-term debt rating of "BB+" has also been lifted by credit ratings agency Standard & Poor’s, from "negative" to "stable"

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, STANDARD AND POOR’S (AUSTRALIA) PTY LTD, AUSTRALIAN NATIONAL UNIVERSITY

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