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

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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%)

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BOC Aviation GMTN Receives Fitch Ratings of A-

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Medium Term Notes blog update profiles Fitch Ratings giving BOC Aviation’s global medium term a final rating of A-. This update is courtesy of Reuters with an excerpt below.

Fitch Ratings has assigned BOC Aviation Pte Ltd’s (BOC Aviation) SGD145m 3.93% senior unsecured notes due 2025 a final rating of ‘A-‘. The notes are issued under the aircraft leasing company’s USD5bn global medium-term note (GMTN) programme. Proceeds from the senior notes would be used for the company’s general corporate purposes. KEY RATING DRIVERS The notes are rated at the same level as BOC Aviation’s ‘A-‘ Long-Term Issuer Default Rating (IDR). This is because the notes constitute direct, unsubordinated and senior unsecured obligations of the company, and rank equally with all its other unsecured and unsubordinated obligations. The IDR, presently on a Stable Outlook, reflects Fitch’s view of a very high probability of extraordinary support to BOC Aviation from its ultimate parent, Bank of China Limited (BOC; A/Stable). RATING SENSITIVITIES Any perceived changes in BOC’s propensity and ability to provide support would impact BOC Aviation’s IDR and hence the issue rating. For more details on BOC Aviation’s ratings and credit profile, see “Fitch Affirms Aircraft Lessors Following Peer Review”, dated 11 August 2014, and BOC Aviation’s rating report, dated 23 October 2014, available at

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Fitch Ratings Gives French Holding Company AA and Stable Outlook


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.

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Hertz Closes On Private Offering For Asset Backed Medium Term Notes


Medium Term Notes update is courtesy of MarketWatch. Hertz, most well known for their vehicle rental company, has closed on a private offering of $780 million medium term rental car asset backed notes. The details from Hertz’s press release, found on MarketWatch, is below.

Hertz Global Holdings, Inc.HTZ, +0.24% (“Hertz” or the “Company”) today announced that Hertz Vehicle Financing II LP (“HVF II”), a wholly owned special purpose subsidiary of the Company, successfully issued $780.0 million in aggregate principal amount of Series 2015-1 Rental Car Asset Backed Notes, Class A, Class B, and Class C (the “Series 2015-1 Notes”).  The Company utilizes the HVF II securitization platform to finance its U.S. rental car fleet.

The expected maturity of the Series 2015-1 Notes is March 2020.  The Series 2015-1 Notes are comprised of $622.44 million aggregate principal amount of 2.73% Rental Car Asset Backed Notes, Class A, $118.529 million aggregate principal amount of 3.52% Rental Car Asset Backed Notes, Class B, and $39.031 million aggregate principal amount of 4.35% Rental Car Asset Backed Notes, Class C.  The Class B Notes are subordinated to the Class A Notes. The Class C Notes are subordinated to the Class A Notes and the Class B Notes.

The net proceeds from the sale of the Series 2015-1 Notes are expected to be used (i) to repay a portion of the outstanding principal amount of HVF II’s Series 2013-A Variable Funding Notes and HVF II’s Series 2014-A Variable Funding Notes and (ii) to make loans to Hertz Vehicle Financing LLC (“HVF”), a wholly owned special purpose subsidiary of the Company.  HVF is expected to use the proceeds of any such loans to acquire or refinance vehicles to be leased to The Hertz Corporation or DTG Operations, Inc., each wholly owned subsidiaries of the Company, for use in their daily rental operations. The offering closed on April 14, 2015.

About Hertz

Hertz operates the Hertz, Dollar, Thrifty and Firefly car rental brands in more than 10,800 corporate and licensee locations throughout 145 countries in North America, Europe, Latin America, Asia, Australia, Africa, the Middle East and New Zealand.  Hertz is the largest worldwide airport general use car rental company with more than 1,700 airport locations in the U.S. and more than 1,300 airport locations internationally.  Product and service initiatives such as Hertz Gold Plus Rewards, NeverLost®, Carfirmations,Mobile Wi-Fi and unique vehicles offered through the Adrenaline, Dream, Green and Prestige Collections set Hertz apart from the competition.  Additionally, Hertz owns the vehicle leasing and fleet management leader Donlen Corporation, operates the Hertz 24/7 hourly car rental business and sells vehicles through its Rent2Buy program.  The Company also owns Hertz Equipment Rental Corporation (“HERC”), one of the largest equipment rental businesses with more than 350 locations worldwide offering a diverse line of equipment and tools for rent and sale. HERC primarily serves the construction, industrial, oil, gas, entertainment and government sectors.

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Turkey’s First Privately Owned Bank’s MTN Receive Fitch Ratings

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Medium Term Notes blog update is courtesy of Reuters. The first privately owned investment and development bank in Turkey, Turkiye Sinai Kalkinma Bankasi A.S.’s (TSKB) MTNs received Fitch Ratings of a BBB-. Below is an excerpt from Reuters.

Fitch Ratings has assigned Turkiye Sinai Kalkinma Bankasi A.S.’s (TSKB) USD750m medium term note programme Long- and Short-term ratings of ‘BBB-‘ and ‘F3′ respectively. The ratings apply only to issuance of senior unsecured notes. The ratings are senior programme ratings and do not imply that the ratings will be assigned to all notes issued under the programme. Senior notes under the MTN programme will represent direct, unconditional, unsecured, and unsubordinated obligations of the bank. However, Fitch reserves the right to not rate certain instruments issued under the programme. The programme is to be listed on the Irish Stock Exchange. Notes issued may be in any currency or of any tenor. KEY RATING DRIVERS The programme’s ratings reflect the ratings that are expected to be assigned to senior notes issued under the programme, and are in line with TSKB’s Long- and Short-term Issuer Default Ratings (IDR) of ‘BBB-‘ and ‘F3′ respectively. The bank’s IDRs in turn reflect the policy role of TSKB and are based on a high probability of support, if required, from the Turkish government. TSKB is 50%-owned by Turkiye Is Bankasi A.S. (BBB-/Stable) and performs a public mission, as defined in its statutes, of attracting foreign capital investments to Turkey and participating in the development of the country’s capital markets. RATING SENSITIVITIES As the MTN programme is rated in line with TSKB’s foreign currency IDRs, the rating is primarily sensitive to changes to the IDRs. TSKB’s IDRs are sensitive to a change in Turkey’s sovereign ratings and also to a material reduction in the level of state-guaranteed debt or an erosion of its policy role, either of which Fitch would consider as a reduction in the state’s commitment to TSKB, and therefore potentially an indication of a reduced propensity to provide support, in case of need.

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Noble Group Repurchases Medium Term Notes


Medium Term Notes blog update profiles Noble Group, a commodity trader in Asia, buying back its $20 million medium term notes. This update is courtesy of the Business Times.

Asia’s largest commodity trader, Noble Group, on Thursday said it has repurchased US$20 million in aggregate principal amount of the 3.625 per cent US dollar fixed rate medium term notes due in 2018.

The medium term notes were issued in March 2013.

Noble said the purchase represents about 5 per cent of the total aggregate principal amount of the notes.

It added that the repurchased notes had been cancelled on Wednesday in line with the terms and conditions of the notes.

As at Wednesday, US$380 million in aggregate principal amount of the medium term notes was outstanding.

These notes are listed on the official list of the Singapore Securities Exchange Trading Limited (SGX-ST).

“SGX-ST’s approval in-principle for the listing of the notes is not to be taken as an indication of the merits of the medium term notes, the company or its subsidiaries,” said Noble.

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BMO To Redeem Outstanding Medium Term Notes


Medium Term Notes blog update is courtesy of MarketWired. Bank of Montreal (BMO) announced via press release on Friday, March 20, their intention of redeeming outstanding medium term notes on April 22, 2015. The press release is below

Bank of Montreal (TSX:BMO)(NYSE:BMO) today announced its intention to redeem on April 22, 2015, all of its outstanding $500,000,000 Subordinated Debentures, Series C Medium-Term Notes Second Tranche (“the Debentures”) due April 22, 2020.

The Debentures are redeemable at Bank of Montreal’s option from April 22, 2015, at a redemption price of 100 per cent of the principal amount plus unpaid accrued interest to the redemption date. Payment of the redemption price will be made by Bank of Montreal on or after April 22, 2015, upon surrender of the Debentures. Interest on the Debentures will cease to accrue from and after the redemption date.

Notice will be delivered to holders of the Debentures in accordance with the terms outlined in the Debentures prospectus supplement dated February 13, 2004.

About BMO Financial Group

Established in 1817, as Bank of Montreal, BMO Financial Group is a highly diversified financial services organization based in North America. The bank offers a broad range of retail banking, wealth management and investment banking products and services to more than 12 million customers. BMO Financial Group had total assets of $672 billion and more than 47,000 employees at January 31, 2015.

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GS Finance Corp. Medium Term Notes An A From Fitch Ratings


Medium Term Notes blog update is a copy of a press release from Fitch Ratings and found on Reuters.

Fitch Ratings is one of the three nationally recognized statistical rating organizations designated by the U.S. Securities and Exchange Commission. Fitch Ratings’ long-term credit ratings are assigned on an alphabetic scale from ‘AAA’ to ‘D’.

Fitch Ratings has rated GS Finance Corp’s (GSFC) senior unsecured medium-term notes program series E ‘A’. The senior medium-term note program is fully and unconditionally guaranteed by The Goldman Sachs Group, Inc. (GS, rated ‘A/F1’/Outlook Stable by Fitch). KEY RATING DRIVERS GSFC is a wholly owned subsidiary of GS, whose senior unsecured medium-term notes benefit from a full an unconditional guarantee from GS. Therefore, the senior unsecured medium-term notes rating of GSFC’s medium-term note program is equalized with GS’ senior unsecured rating. GSFC’s senior unsecured medium-term note rating is based solely upon the guarantee of GS. RATING SENSITIVITIES GSFC’s senior unsecured medium-term notes rating is sensitive to any rating action, positive or negative, taken against GS. Given GS’ fully and unconditional guarantee, any change in its ratings will likely impact the rating of this issue. Fitch assigns the following rating: The Goldman Sachs Group, Inc.: –GS Finance Corp Senior Unsecured Medium-Term Note Program, Series E ‘A’ Contact: Primary Analyst Justin Fuller Senior Director +1-312-368-2057 Fitch Ratings, Inc. 70 W. Madison St. Chicago, IL 60602 Secondary Analyst Mohak Rao Director +1-212-908-0559 Committee Chairperson Nathan Flanders Managing Director +1-212-908-0827 Media Relations: Elizabeth Fogerty, New York, Tel: +1 (212) 908 0526, Email: Additional information is available on


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