Mapletree Industrial Trust’s Notes Receive Fitch Ratings of BBB+

Posted on May 13, 2015May 13, 2015 by MTN Blog Team

Medium Term Notes blog update profiling Mapletree Industrial Trust’s notes receiving a Fitch Ratings of BBB+, courtesy of Reuters. Mapletree Industrial Trust is a Singapore-focused Real Estate Investment Trust (REIT) listed on the Main Board of Singapore Exchange, with a large and diversified portfolio of industrial properties. As of March 2015, their portfolio of 84 properties in Singapore is valued at approximately S$3.4 billion. An excerpt from the Reuters update is below.

Fitch Ratings has assigned Singapore-based Mapletree Industrial Trust’s (MIT; BBB+/Stable) SGD75m 3.02% senior unsecured medium-term notes issue due on 11 May 2023 a final rating of ‘BBB+’. The final rating follows the receipt of documents conforming to information already received, and is in line with the expected rating assigned on 6 May 2015. The notes are part of MIT’s SGD1bn multi-currency medium-term note programme, and will constitute direct, unconditional, unsubordinated and unsecured obligations of the issuer Mapletree Industrial Trust Treasury Company Pte Ltd and the guarantor, DBS Trustee Limited. DBS Trustee Limited acts as trustee for MIT. The trust has to-date issued SGD245m of senior unsecured notes off its MTN programme. The issue proceeds will be used to refinance part of MIT’s existing debt. This will lengthen its debt maturity profile and significantly reduce its refinancing needs. MIT has sufficient committed but unutilised credit facilities, as well as available cash to meet its near-term commitments. KEY RATING DRIVERS Good Assets, Granular Portfolio: MIT’s portfolio consists of 84 properties across five industrial property types, with over 14.8 million square feet of net leasable area. It has low industry and tenant concentration, with no single industry accounting for more than 16% of revenue, and the 10 largest tenants contributing to less than 18% of revenue. MIT continues to record positive rental roll-over rates – its portfolio-wide rent per square foot increased to SGD1.84 in the fourth quarter of its financial year ending on 31 March 2015, up 5% from 4QFY14. The quarterly occupancy rate has remained over 90% on average since its IPO in October 2010. Geographic Concentration and Limited Scale: MIT’s rating is constrained because its assets are concentrated within Singapore, and it has limited operating scale compared to higher-rated global property investment companies. Strong Financing Flexibility: MIT has low interest-rate risk and strong financing flexibility – it has FFO fixed charge cover of over 8x. More than 75% of its debt carries fixed interest rates; and its FFO net leverage has remained below 6x and its debt to investment property assets ratio is less than 35%. It has zero encumbrances on its assets, which provides an unencumbered asset cover of more than 2.5x to its unsecured debt. Strong Sponsor: MIT benefits from competitively priced debt funding and strategically located investment properties, by virtue of being sponsored by Mapletree Investments Pte Ltd. KEY ASSUMPTIONS Fitch’s key assumptions within our rating case for the issuer include: – Annual revenue growth in the low single digits – EBITDA margin to remain above 62% – Capex/revenue to average around 10% (FY15: 17%) RATING SENSITIVITIES Positive: No positive rating action is expected in the medium term given MIT’s geographic concentration in Singapore and limited scale in relation to global property investment companies. Negative: Future developments that may, individually or collectively, lead to negative rating action include – Heightened interest rate risk as evidenced by FFO fixed-charge coverage sustained below 5x (FY15: 8.8x) – FFO adjusted net leverage sustained above 6x (FY15: 5.1x) and the ratio of gross debt net of readily available cash to investment property value (LTV) sustained above 40%-45% (FY15: 31%) – Unencumbered assets / unsecured debt below 2x (FY15: 3.0x) – A sustained and material weakening in the competitive position of MIT’s assets, as evidenced in weaker rental renewal rates and occupancy levels, resulting in EBITDA margin sustained below 60% (FY15: 64%)

Fitch Ratings Gives French Holding Company AA and Stable Outlook

Posted on April 29, 2015 by MTN Blog Team

Fitch-agency-cuts-Italy-and-Spain-ratings

Medium Term Notes blog update is courtesy of Reuters. Fitch Ratings has rated EPIC BPI-Groupe a AA rating and given them a stable outlook. The EPIC BPI-Groupe is the holding company for the French State’s participation in OSEO Group’s operating company OSEO S.A. and is fully-owned by the state. An excerpt from Reuters is below.

Fitch Ratings has affirmed EPIC BPI-Groupe (EPIC) Long-term foreign and local currency Issuer Default Ratings (IDRs) at ‘AA’ with a Stable Outlook, and its Short-term foreign currency IDR at ‘F1+’. Fitch has also affirmed Bpifrance Financement’s EUR4bn certificate of deposit programme, EUR20bn euro medium term notes programme and EUR4bn negotiable medium-term notes at Long-term ‘AA’ and Short-term ‘F1+’. The bonds issued under these programmes benefit from an unconditional and irrevocable first-call guarantee from EPIC BPI-Groupe. Fitch rates the holding company EPIC, but not BPI-Groupe SA or its subsidiaries (including Bpifrance Financement) represented by Bpifrance Group. Fitch rates EPIC on a top-down basis under its public-sector entity rating criteria, due to EPIC’s status as a public agency, its tight control by the French State (AA/Stable/F1+) and to a lesser extent, its strategic importance for the government. As a result, the ratings of EPIC are equalised with those of, and credit-linked to, France. KEY RATING DRIVERS EPIC would benefit from very strong state support in case of need. Although the French government has no legal obligation to prevent a default, Fitch assumes that it is highly motivated to provide support on a long- or short-term basis and that it has the legal and financial means to enable EPIC to meet its debt service obligations on time. By virtue of its status, EPIC’s assets and liabilities cannot be liquidated or transferred to entities other than the French State. EPIC is 100% owned by the French government and its missions are carried out through BPI-Groupe SA and its subsidiaries that make up Bpifrance Group. Bpifrance Group is subject to a strong administrative, legal and financial oversight by the French State which defines its missions. As part of public policy, Bpifrance Group’s commitments are monitored by parliament through annual performance reports. Bpifrance Group is a strategic tool for French economic policy through co-lending (with commercial banks) for small and medium-sized enterprises (SMEs) and mid-caps. Its public missions have been reinforced with export financing and by a framework-agreement with Agence Francaise de Developpement (AFD; AA/Stable/F1+) to foster the international development of French SMEs. Underpinned by the absence of high fixed costs as it has no significant branch network, Bpifrance Group continues to post a sound cost/income ratio on its different activities. Under its 2014-2017 strategic plan, Bpifrance Group expects to continue to post sound budgetary performance, with a low cost of risk and a positive operating income of EUR502m at end-2017 (2014: EUR389m). Bpifrance Group benefits from diversified sources of funding, through EPIC’s debt financing division subsidiary (Bpifrance Financement), allowing it to limit its refinancing risk. Since 2015, its funding is also underpinned by the eligibility of Bpifrance Financement’s securities for the public sector purchase programme of the European Central Bank. Bpifrance Financement has a solid and safe liquidity profile, with a confirmed amount of liquidity reserves of EUR9.6bn at end-2014, representing one year of business activity. This translates into a solid liquidity coverage ratio (LCR) under Basel III regulations (600% at end-2014). The breakdown of exposures by product and by sector is diversified in terms of both exposure and number of counterparties. Bpifrance Group has a strict policy on large exposures, thereby limiting high individual exposure and favouring portfolio diversification. RATING SENSITIVITIES EPIC’s ratings are credit linked to the sovereign. A positive or negative rating action on the sovereign would result in a similar rating action on the issuer. Changes to EPIC’s legal status that weaken potential support from the state could also lead to a downgrade. A movement in the ratings of EPIC would affect the ratings of guaranteed bonds issued by Bpifrance Financement.

World’s Leading Shopping Center Company, Scentre Group Seeks Euro Medium Term Notes

Posted on April 2, 2015 by MTN Blog Team

Medium Term Notes blog update is courtesy of the Australian Business Review. One of the world’s leading shopping center companies, Scentre Group, announced it is seeking $778 million in euro medium term notes.

Scentre Group is raising £400 million ($778 million) under its euro medium term note (EMTN) programme. The issue comprises of seven-year fixed-rate guaranteed notes with a coupon of 2.375 percent.

The proceeds of the issue will be used to repay borrowings under the company’s revolving bank facilities.

Australian companies, looking to cut dependence on bank loans, have turned to the European debt market in a big way over the past year, as they take advantage of historically low interest rates to implement long-pending growth plans. Other issuers in the Euro market include the Big Four banks, Transurban and Sydney airport.

Scentre (SCG)was spun off from mega mall owner Westfield Group last year by merging the Australian and New Zealand assets of the group with Westfield Retail Trust. It raised nearly more than $3 billion from the European debt markets last year to repay its bridge loan facility.

Indonesia Based Finance Firm’s Euro Medium Term Notes Receive Fitch Rating BBB-

Posted on March 31, 2015 by MTN Blog Team

Medium Term Notes blog update is courtesy of Reuters. Indonesia-based finance firm, PT Astra Sedaya Finance’s Euro Medium Term Note (EMTN) program received a BBB- rating from Fitch ratings.

Fitch Ratings has assigned Indonesia-based PT Astra Sedaya Finance’s (ASF; BBB-/Stable) USD1bn senior unsecured euro medium-term note (EMTN) programme and USD300m three-year senior notes issued under the programme a final rating of ‘BBB-‘. This follows the completion of the note issue and the receipt of final documents conforming to information previously received. The final rating is same as the expected rating assigned on 19 March 2015. KEY RATING DRIVERS The notes are rated as the same level as ASF’s Long-Term Foreign-Currency Issuer Default Rating (IDR) of ‘BBB-‘ in accordance with Fitch criteria. ASF’s ratings reflect Fitch’s expectation of a high probability of support from its majority shareholder, PT Astra International Tbk (AI). Fitch considers ASF to be a strategically important subsidiary of AI because ASF accounts for a sizeable portion (around 30% in 2014) of the parent’s automobile credit sales. The support also reflects AI’s 86% effective ownership of ASF and the finance company’s strong synergies and integration with the parent.

African Brewer, EABL, Hopes for 11 Billion Shillings Through Medium Term Notes

Posted on March 4, 2015 by MTN Blog Team

Medium Term Notes blog update courtesy of Reuters Africa.

Kenya’s East African Breweries Ltd is seeking to raise 11 billion shillings ($120.48 million) through medium-term notes, according to a company statement published in local newspaper Daily Nation on Wednesday.

EABL, controlled by Britain’s Diageo, said it had obtained regulatory approval for this which will be restricted to the domestic market.

The company did not specify why it is raising money.

Investors will be required to have a minimum subscription of 100,000 shillings, and the first tranche of 5 billion shillings will be launched on Wednesday.

About the company

East African Breweries Limited, commonly referred to as EABL, is a Kenya based holding company, which manufactures branded alcoholic and non-alcoholic beverages. EABL is based out of Nairobi, Kenya, with subsidiaries in Kenya, Uganda and Tanzania. The group has distribution partners in Democratic Republic of Congo, Rwanda and South Sudan. In 2005, EABL became the first company in East Africa to reach US$1 Billion in value.

India Ratings Awarded India Debt Instruments Ratings

Posted on February 27, 2015March 1, 2015 by MTN Blog Team

Medium Term Notes blog update is courtesy of Reuters.

Below are the ratings awarded by India Ratings and Research Private Ltd (India Ratings), formerly known as Fitch Ratings India for local debt instruments as of February 26, 2015.

Company	Instrument	Rating	Amount(RS .MLN)	Movement
Short Term Ratings:
Aarti Industries Ltd	CP	IND A1+	2000	Assigned
Arihant Ship Breakers	Non-FB WC limits	IND A4	75	Assigned
Champion Rolling Mill Pvt Ltd	Non-FB limits	IND A4+	140	Assigned
Dinesh Textile Mills	NFB WC limits	IND A4	2.5	Assigned
Maheshwari Logistics Pvt Ltd	Non FBL	IND A3	224.8	Suspended
R V Plastic Ltd	Non-FB BG	IND A4	70	Assigned
Shakun Gases Pvt Ltd	Non-FB WC limits	IND A4	190	Assigned
Wellman Carbo Metalicks (I) Ltd	Non FBL	IND A4+	560	Assigned

Long Term Rating:
Aarti Industries Ltd	LT Issuer Rating	IND AA-		Assigned
Arihant Ship Breakers	Long-TL	IND B-	16.2	Assigned
Arihant Ship Breakers	Fund based WC limits	IND B-	75	Assigned
Champion Rolling Mill Pvt Ltd	Long-TL	IND BB+	49.95	Assigned
Champion Rolling Mill Pvt Ltd	FB limits (CC)	IND BB+	200	Assigned
Dinesh Textile Mills	FB WC limit	IND B+	40	Assigned
Dinesh Textile Mills	TL	IND B+	11.69	Assigned
Kbs Industries Pvt Ltd	TL	IND B	9.9	Assigned
Kbs Industries Pvt Ltd	FB WC limit	IND B/ A4	100	Assigned
Kbs Industries Pvt Ltd	Proposed FB WC limit	IND B (exp)/	100	Assigned
		A4 (exp)
Ls Rice Exports Pvt Ltd	TL	IND B	13.1	Assigned
Ls Rice Exports Pvt Ltd	FB WC limit	IND B/ A4	40	Assigned
Maheshwari Logistics Pvt Ltd	LT Issuer Rating	IND BBB		Suspended
Maheshwari Logistics Pvt Ltd	FBL	IND BBB	270	Suspended
Maheshwari Logistics Pvt Ltd	TL	IND BBB	69.4	Suspended
Mars Packaging Industries	TL	IND B/ A4	6.8	Assigned
Mars Packaging Industries	FB WC limit	IND B+/ A4	70	Assigned
R V Plastic Ltd	FB limits	IND B-	100	Assigned
Shakun Gases Pvt Ltd	FB WC limits	IND B-	40	Assigned
Shri Khemisati Plaspack Llp	TL		37.5	Assigned
(Khemisati)		IND B-	20	Assigned
Shri Khemisati Plaspack Llp	FBL
(Khemisati)		IND AA-		Outlook to
Shriram Pistons & Rings Ltd	LT Issuer Rating			Positive

Note:- All Indian National-scale ratings previously assigned by Fitch have been transferred to India Ratings & Research Private Ltd (India Ratings), which is a wholly owned subsidiary of the Fitch Group. The withdrawn criteria are now available on India Ratings’ website at www.indiaratings.co.in

Swedish Company’s Euro Medium Term Note Raises 600M €

Posted on February 26, 2015March 1, 2015 by MTN Blog Team

Medium Term Notes blog update courtesy of Business Wire.

Svenska Cellulosa Aktiebolaget, SCA (STO:SCAA)(STO:SCAB), has today, under its Euro Medium Term Note (EMTN) program, raised EUR 600m, of which EUR 300m has a tenor of five years and EUR 300m has a tenor of ten years. The Re-offer yield for the five-year bond is 0.54% per year, corresponding to Euro Mid-swaps +0.28 percentage points. The Re-offer yield for the ten-year bond is 1.15% per year, corresponding to Euro Mid-swaps +0.5 percentage points.

The bond issues were oversubscribed and the bonds were subsequently placed with 107 international investors.

The bonds will be listed on the Luxembourg Stock Exchange. The purpose of the transactions is to refinance maturing loans.

About Svenska Cellulosa Aktiebolage

Svenska Cellulosa Aktiebolaget consumer goods company and pulp and paper manufacturer based out of Stockholm. Svenska Cellulosa Akteibolage was founded in 1929 by Ivar Kreuger and originally a holding company for ten Swedish forest industry companies. Company’s current products include tissue, publication paper, sawn wood products and wood pulp. Svenska Cellulosa Aktiebolage is under current President and CEO Magnus Groth and Chairman Pär Boman.

General Motors Financial International BV Is Expected To Receive BB+ Rating

Posted on February 17, 2015February 28, 2015 by MTN Blog Team

Medium Term Notes blog update courtesy of the Fort Mill Times.

Fitch Ratings expects to assign a ‘BB+’ rating to General Motors Financial International B.V.’s (GMFI) EUR650 million senior unsecured notes issuance under its EUR10 billion Euro Medium Term Note (EMTN) program. The notes will pay a coupon of 0.85% and will be due in February 2018.

KEY RATING DRIVERS

The EUR650 million notes will be guaranteed by General Motors Financial Company, Inc. (GMF) and by GMF’s principal operating subsidiary in the U.S., AmeriCredit Financial Services, Inc. (AFSI). The notes will rank pari passu with GMF’s other senior unsecured debt issuance, and therefore, the ratings assigned to the notes is equalized with GMF’s existing long-term Issuer Default Rating of ‘BB+’. The issuance is in line with GMF’s strategy to increase the proportion of unsecured debt in its capital structure and does not result in a significant increase in its leverage. As a result, there is no rating impact on GMF’s IDR or Positive Rating Outlook.

GMF’s ratings reflect the direct linkage to its parent, General Motors Company’s (GM, rated ‘BB+’, Positive Outlook by Fitch) ratings. Fitch considers GMF to be a ‘core’ subsidiary of GM based on actual and potential support provided to GMF from GM, increasing percentage of GMF’s earning assets related to GM, and strong financial and operational linkages between the companies. The ratings also reflect GMF’s seasoned management team, improving funding profile, consistent operating performance, good asset quality, and adequate capitalization and liquidity.

RATING SENSITIVITIES

The expected ratings assigned to the proposed notes are equalized with GMF’s IDR, and therefore would be expected to move in parallel with any changes in GMF’s ratings. The Positive Rating Outlook on GMF is linked to that of its parent, GM. GMF’s ratings will move in tandem with GM. Any change in Fitch’s view on whether GMF remains core to its parent could change this rating linkage with its parent. A material increase in leverage without a corresponding decrease in the risk of the portfolio, an inability to access funding for an extended period of time, and/or significant deterioration in the credit quality of the underlying loan and lease portfolio, could become constraining factors on the parent’s ratings.

Fitch has assigned the following ratings:

General Motors Financial International B.V. (GMFI)

–EUR650 million senior unsecured notes due February 2018 ‘BB+ (EXP)’

Fitch currently rates GMF as follows:

–Long-term IDR ‘BB+'; (Outlook Positive)

–Senior unsecured debt ‘BB+’.

Fitch currently rates GMFI as follows:

–Long-term IDR ‘BB+'; (Outlook Positive)

–Euro Medium Term Note Program ‘BB+’.