South Korean steel giant POSCO (NYSE:PKX) announced it'll be selling close to $700 million in global bonds in October, according to company President Choi Jong Taehired.
POSCO has a rating of A at Standard & Poor’s and A- at Fitch Ratings, and A2 at Moody’s Investors Service (NYSE:MCO).
Similar to the region is resides in and ongoing geopolitical concerns, POSCO has had a rocky ride over the last year, moving up and down in wide swings, although it seems to have recovered nicely from May lows, and has been consistently moving upward in share price.
On October 1 of 2009, they stood at $100 a share even.
Friday they closed at $116.63, gaining $2.65, or 2.32 percent. They have a market cap of just under $36 billion.
Showing posts with label Fitch Ratings. Show all posts
Showing posts with label Fitch Ratings. Show all posts
Monday, October 4, 2010
Thursday, September 16, 2010
Citigroup (NYSE:C), JPMorgan (NYSE:JPM), Bank of America (NYSE:BAC) Bookrunners on Corn Products (NYSE:CPO) Senior Notes
Citigroup Global Markets Inc. (NYSE:C), J.P. Morgan Securities LLC (NYSE:JPM) and Banc of America Securities LLC (NYSE:BAC) were joint bookrunners on the issuance of $900 million in senior notes by Corn Products International (NYSE:CPO).
Included in the issuance are $350 million in 3.2 percent notes due November 1, 2015; $400 million in 4.625 percent notes due November 1, 2020;, and $150 million in 6.625 percent notes due April 15, 2037.
Most of the offering will be used to raise capital to acquire National Starch. The deal is expected to close on September 17.
Fitch Ratings assigned a "BBB" to the $900 million senior note issuance of Corn Products, as well as to the bank credit facility, long-term Issuer Default Rating and senior unsecured debt ratings of the company.
Fitch maintained a stable outlook on Corn Products.
Included in the issuance are $350 million in 3.2 percent notes due November 1, 2015; $400 million in 4.625 percent notes due November 1, 2020;, and $150 million in 6.625 percent notes due April 15, 2037.
Most of the offering will be used to raise capital to acquire National Starch. The deal is expected to close on September 17.
Fitch Ratings assigned a "BBB" to the $900 million senior note issuance of Corn Products, as well as to the bank credit facility, long-term Issuer Default Rating and senior unsecured debt ratings of the company.
Fitch maintained a stable outlook on Corn Products.
Thursday, September 9, 2010
Teck (NYSE:TCK) Notes Get "BBB-" Rating From Fitch
Fitch Ratings has assigned a "BBB-" to the $700 million in new notes offered by Teck Resources Limited (NYSE:TCK)(TSE:TCK-B).
Here's how Fitch rated the new notes for Teck:
- Issuer Default Rating (IDR) "BBB-";
- Senior Unsecured Notes "BBB-".
The senior unsecured notes are due 2021 and 2040.
Teck will use the notes to acquire up to $1 billion in total principal of existing notes due 2019.
Fitch keeps the rating outlook on Teck stable, citing their strong position in copper, low cost zinc operations, and leading position in the seaborne hard metallurgical coal market.
The stable outlook by Fitch assumes Teck will continue on with its current financial profile.
Here's how Fitch rated the new notes for Teck:
- Issuer Default Rating (IDR) "BBB-";
- Senior Unsecured Notes "BBB-".
The senior unsecured notes are due 2021 and 2040.
Teck will use the notes to acquire up to $1 billion in total principal of existing notes due 2019.
Fitch keeps the rating outlook on Teck stable, citing their strong position in copper, low cost zinc operations, and leading position in the seaborne hard metallurgical coal market.
The stable outlook by Fitch assumes Teck will continue on with its current financial profile.
Wednesday, September 8, 2010
Fitch Raises BP's (NYSE:BP) Rating Up Three Notches
After gaining control of the oil spill in the Gulf of Mexico, Fitch has raised the credit rating of BP (NYSE:BP) up three notches.
Both the senior unsecured rating and long-term issuer default rating were raised from BBB to A, said Fitch in a statement. They also said their outlook on the oil giant is stable.
Fitch said, their increase of the ratings and outlook “reflect an end to the threat of leaks from the Macondo well." They added it “also reflects both the improved visibility of potential liability scenarios” and “substantial progress that BP has made to date in building up liquidity to address potential financial payments.”
In the midst of the oil spill, on June 15, Fitch has slashed BP's rating by six levels to BBB. That's only two levels above junk. That was related to the uncertainty of the costs and level of debt that may have had to incur in order to pay for the accident.
While BP does have credit available in case of emergencies, they've chosen to primarily raise funds by divesting of assets, which also helps strengthen the credit outlook for the company now that the well has been plugged.
Both the senior unsecured rating and long-term issuer default rating were raised from BBB to A, said Fitch in a statement. They also said their outlook on the oil giant is stable.
Fitch said, their increase of the ratings and outlook “reflect an end to the threat of leaks from the Macondo well." They added it “also reflects both the improved visibility of potential liability scenarios” and “substantial progress that BP has made to date in building up liquidity to address potential financial payments.”
In the midst of the oil spill, on June 15, Fitch has slashed BP's rating by six levels to BBB. That's only two levels above junk. That was related to the uncertainty of the costs and level of debt that may have had to incur in order to pay for the accident.
While BP does have credit available in case of emergencies, they've chosen to primarily raise funds by divesting of assets, which also helps strengthen the credit outlook for the company now that the well has been plugged.
Friday, August 20, 2010
Teck (NYSE:TCK) Notes Rated "BBB-" by Fitch Ratings
New senior unsecured notes issued by Teck Resources Limited (NYSE:TCK) have been given a "BBB-" rating by Fitch Ratings.
One of the group of senior unsecured notes worth $300 million will be due in 2017, and another group worth $450 million will be due in 2040.
Capital garnered from the offerings will be sues to acquire up to $800 million of existing notes which are due in 2014 and 2016.
Fitch said if other leveraged acquisitions were to be made, a negative rating for Tech could follow, and if they further pay down their debt, positive ratings could be applied to them as well.
Teck was rated by Fitch like this:
- Issuer Default Rating "BBB-";
- Senior unsecured notes "BBB-".
One of the group of senior unsecured notes worth $300 million will be due in 2017, and another group worth $450 million will be due in 2040.
Capital garnered from the offerings will be sues to acquire up to $800 million of existing notes which are due in 2014 and 2016.
Fitch said if other leveraged acquisitions were to be made, a negative rating for Tech could follow, and if they further pay down their debt, positive ratings could be applied to them as well.
Teck was rated by Fitch like this:
- Issuer Default Rating "BBB-";
- Senior unsecured notes "BBB-".
Wednesday, July 21, 2010
Apache (NYSE:APA) Placed on Review after BP (NYSE:BP) Acquisitions
Apache Corp. (NYSE:APA) was placed on review by Fitch Ratings after their announcement of intent to acquire assets of BP (NYSE:BP) in Egypt and North America.
The total amount to be paid by Apache for both natural gas and oil fields held by BP is $7 billion. Capital will be raised by Apache via selling common shares in the company.
To be placed on review in this case means for the purpose of downgrading the company.
After the deal, the amount of leverage (aside from selling stock) will grow significantly, and could result in Apache's issuer default rating to drop from A- to BBB+.
"If Apache were to be downgraded, it would be no more than one notch," said Moody's in a statement.
The total amount to be paid by Apache for both natural gas and oil fields held by BP is $7 billion. Capital will be raised by Apache via selling common shares in the company.
To be placed on review in this case means for the purpose of downgrading the company.
After the deal, the amount of leverage (aside from selling stock) will grow significantly, and could result in Apache's issuer default rating to drop from A- to BBB+.
"If Apache were to be downgraded, it would be no more than one notch," said Moody's in a statement.
Friday, June 18, 2010
Moody's (NYSE:MCO) Slashes BP (NYSE:BP) Debt Ratings
Moody's (NYSE:MCO) follows other ratings agencies in downgrading the debt of BP (NYSE:BP), cutting several of its credit ratings today.
The long-term debt rating of BP was cut from A2 to Aa2, their BP North America unsecured issuer rating dropped from Aa3 to Baa1, and for their BP Finance PLC unit, their senior unsecured issuer rating was slashed from Aa3 to A3.
Fitch Ratings and Standard & Poors recently downgraded the debt of BP as well.
The reasons for the cuts were solely on the uncertainty related to the Deepwater Horizon explosion which released the oil into the Gulf of Mexico.
BP's American Depository Receipts or ADR has fallen by 47.7 percent since the accident on April 20.
The long-term debt rating of BP was cut from A2 to Aa2, their BP North America unsecured issuer rating dropped from Aa3 to Baa1, and for their BP Finance PLC unit, their senior unsecured issuer rating was slashed from Aa3 to A3.
Fitch Ratings and Standard & Poors recently downgraded the debt of BP as well.
The reasons for the cuts were solely on the uncertainty related to the Deepwater Horizon explosion which released the oil into the Gulf of Mexico.
BP's American Depository Receipts or ADR has fallen by 47.7 percent since the accident on April 20.
Thursday, June 17, 2010
BP (NYSE:BP) Downgraded by Standard & Poor's
Unsurprisingly, after Fitch Ratings hammered BP (NYSE:BP) by lowering its rating by six notches from AA to BBB, Standard & Poor's has quickly followed by lowering their BP rating from 'AA-/A-1+' to 'A/A-1.'
"The downgrade reflects our opinion of the challenges and uncertainties that BP continues to face in the aftermath of the explosion on the Deepwater Horizon rig in the Gulf of Mexico on April 20, 2010, and the subsea Macondo well blowout," said Standard & Poor's credit analyst Simon Redmond. "These challenges and uncertainties include the difficulties BP is experiencing in containing the spill as well as the ultimate extent of the pollution, the consequences for BP of ongoing official investigations, and the implications of these investigations for the magnitude and timing of further cash payments by BP."
After the so-called escrow account where BP will pay in $20 billion over the next four years, net debt for the giant oil company increased to $45.2 billion, up from the prior $25.2 billion at the end of March.
Ongoing uncertainties related to the Gulf oil spill have Standard & Poor's also saying more downward rating adjustments could be implemented in the near future.
"The downgrade reflects our opinion of the challenges and uncertainties that BP continues to face in the aftermath of the explosion on the Deepwater Horizon rig in the Gulf of Mexico on April 20, 2010, and the subsea Macondo well blowout," said Standard & Poor's credit analyst Simon Redmond. "These challenges and uncertainties include the difficulties BP is experiencing in containing the spill as well as the ultimate extent of the pollution, the consequences for BP of ongoing official investigations, and the implications of these investigations for the magnitude and timing of further cash payments by BP."
After the so-called escrow account where BP will pay in $20 billion over the next four years, net debt for the giant oil company increased to $45.2 billion, up from the prior $25.2 billion at the end of March.
Ongoing uncertainties related to the Gulf oil spill have Standard & Poor's also saying more downward rating adjustments could be implemented in the near future.
Wednesday, June 16, 2010
Halliburton (NYSE:HAL) Ratings Secure Says Fitch
Fitch Ratings reiterated its rating on Halliburton (NYSE:HAL), explaining the cost of the oil spill in the Gulf of Mexico won't have any impact on the oil giant as it has had on BP (NYSE:BP).
The senior unsecured notes and senior unsecured bank facility remained rated at "A-" while the issuer default rating remained "A-" as well.
Included in the reasoning has been the comments by BP on what led up to the explosion on the Deepwater Horizon oil rig which led to the spill, along with the company receiving indemnity from BP on costs connected to the well.
Halliburton's part in the project was their cementing of well before it failed on April 20.
Finally, Halliburton doesn't have that much exposure to deepwater, offshore drilling and it is only a small part of their overall business.
The senior unsecured notes and senior unsecured bank facility remained rated at "A-" while the issuer default rating remained "A-" as well.
Included in the reasoning has been the comments by BP on what led up to the explosion on the Deepwater Horizon oil rig which led to the spill, along with the company receiving indemnity from BP on costs connected to the well.
Halliburton's part in the project was their cementing of well before it failed on April 20.
Finally, Halliburton doesn't have that much exposure to deepwater, offshore drilling and it is only a small part of their overall business.
BP (NYSE:BP) Debt Insurance Costs Soar Again
The cost of insuring BP's (NYSE:BP) debt has risen again, as credit default swaps rose to 620 basis points, up from yesterday's close of 495 basis points.
That brings the cost of insuring their debt to $620,000 for each $10 million insured over a five-year period. Just on Monday it stood at $424,000 for each $10 million insured.
This is the highest levels BP has ever reached in insuring its debt levels, and comes on the heals of ongoing pressure to create a huge escrow account to pay out claims from, and being turned on by those in their own industry, all of which points to more potential financial liability in the situation.
Fitch Ratings also downgraded the company by six notches on Tuesday, dropping them from AA to BBB, not far above junk status.
That brings the cost of insuring their debt to $620,000 for each $10 million insured over a five-year period. Just on Monday it stood at $424,000 for each $10 million insured.
This is the highest levels BP has ever reached in insuring its debt levels, and comes on the heals of ongoing pressure to create a huge escrow account to pay out claims from, and being turned on by those in their own industry, all of which points to more potential financial liability in the situation.
Fitch Ratings also downgraded the company by six notches on Tuesday, dropping them from AA to BBB, not far above junk status.
Tuesday, June 15, 2010
BP's (NYSE:BP) CDS Costs Rise on Fitch Downgrade
The huge downgrade by Fitch Ratings for BP (NYSE:BP) (LON:BP) had an immediate effect on the cost of securing debt, as the cost of compensating those affected by the Gulf spill rise, and the time-frame to pay claims is diminishing.
With the drop from AA debt to BBB debt, the cost of credit default swaps for BP rose right away, sending the spread wider.
BP's CDS increased to 465 basis points, up almost 75 basis points from the close on Monday, according to Markit. This seems to have been anticipated though, as the basis points had already been moving up even before the downgrade.
With the drop from AA debt to BBB debt, the cost of credit default swaps for BP rose right away, sending the spread wider.
BP's CDS increased to 465 basis points, up almost 75 basis points from the close on Monday, according to Markit. This seems to have been anticipated though, as the basis points had already been moving up even before the downgrade.
Fitch Says No BP (NYSE:BP) Bankruptcy
Fitch Ratings, which downgraded BP by six notches - from AA to BBB today, said while there could be more downgrades and further financial pressures on the company, they don't expect the company to have to go into bankruptcy protection.
Some of the concerns of Fitch are financial claims growing much larger than they are now, pressure to pay out much quicker than the oil giant has been, and their access to capital in that environment.
Now that the company has been downgraded to BBB, cost of debt will rise, and it'll be harder to get the capital needed to continue operations and pay out liabilities.
This is the problem with Obama's rhetoric, which while pandering to his base, also creates the type of atmosphere which demands things to be done immediately, even though it does more harm than good in the long term.
Some of the concerns of Fitch are financial claims growing much larger than they are now, pressure to pay out much quicker than the oil giant has been, and their access to capital in that environment.
Now that the company has been downgraded to BBB, cost of debt will rise, and it'll be harder to get the capital needed to continue operations and pay out liabilities.
This is the problem with Obama's rhetoric, which while pandering to his base, also creates the type of atmosphere which demands things to be done immediately, even though it does more harm than good in the long term.
Fitch Ratings Downgrades BP (NYSE:BP) Close to Junk Status
Fitch Ratings downgraded BP (NYSE:BP) notches, from AA to BBB, not far from junk status.
The reasons given by Fitch were:
“The indication late last week from US government scientists of a significantly higher spill rate than previously announced by all parties, which Fitch expects will materially increase BP’s exposure to Justice Department fines payable in the near to medium-term.”
and ...
“The significant step-up in action from the U.S. government surrounding calls for pre-emptive escrowing of damage claims. Both of these events have a direct bearing on BP’s fundamental financial flexibility.”
As Fitch mentioned, the amount of money to be paid out is increasing for BP, while the timeframe within which to pay it is decreasing.
That could result in more multi-notch downgrades in the near future, said the ratings agency.
The reasons given by Fitch were:
“The indication late last week from US government scientists of a significantly higher spill rate than previously announced by all parties, which Fitch expects will materially increase BP’s exposure to Justice Department fines payable in the near to medium-term.”
and ...
“The significant step-up in action from the U.S. government surrounding calls for pre-emptive escrowing of damage claims. Both of these events have a direct bearing on BP’s fundamental financial flexibility.”
As Fitch mentioned, the amount of money to be paid out is increasing for BP, while the timeframe within which to pay it is decreasing.
That could result in more multi-notch downgrades in the near future, said the ratings agency.
Thursday, June 3, 2010
Moody's (NYSE:MCO) Downgrades BP (NYSE:BP)
Moody's (NYSE:MCO) has joined Fitch Ratings in downgrading BP (NYSE:BP), dropping their senior unsecured ratings one, from Aa1 to Aa2.
While these ratings remain good ratings, it's a precursor to what could come if BP isn't able to turn things around in the Gulf by stopping or slowing down the oil leak soon.
The move by Moody's was made because of that very thing, where the costs of cleaning up the Gulf and the unknown legal ramifications the company will experience had concerns over debt high, as well as the increasing possibility BP could ultimately default on the debt.
Moody's said there could be further downgrades in the near future if the circumstances don't change.
While these ratings remain good ratings, it's a precursor to what could come if BP isn't able to turn things around in the Gulf by stopping or slowing down the oil leak soon.
The move by Moody's was made because of that very thing, where the costs of cleaning up the Gulf and the unknown legal ramifications the company will experience had concerns over debt high, as well as the increasing possibility BP could ultimately default on the debt.
Moody's said there could be further downgrades in the near future if the circumstances don't change.
BP (NYSE:BP) Could Default on Debt
The price of BP (NYSE:BP) bonds has plunged, an event that markets believe is the prelude to the company possibly defaulting on its debt obligations.
It seems what was propping the bonds up was the hopes the "top kill" effort to plug the oil leak would succeed, since that failed, the bottom has fallen out of the price of BP's bonds.
Consequently, Fitch cut the rating of BP from AA+ to AA. Even so AA is still a top rating, but it gives us a look at what the near future will bring if costs of attempting to stop the flow of oil continues to rise.
That's why Fitch Ratings said there could be further downgrades if costs associated with the oil leak aren't abated.
It seems what was propping the bonds up was the hopes the "top kill" effort to plug the oil leak would succeed, since that failed, the bottom has fallen out of the price of BP's bonds.
Consequently, Fitch cut the rating of BP from AA+ to AA. Even so AA is still a top rating, but it gives us a look at what the near future will bring if costs of attempting to stop the flow of oil continues to rise.
That's why Fitch Ratings said there could be further downgrades if costs associated with the oil leak aren't abated.
Saturday, May 29, 2010
Dow in Worst May in 70 Years
The Dow Jones Industrial Average is sure to glad May is almost over, as its performance in the Month before summer was the worst in 70 years.
You have to go back to 1940 to find a worst performance for the month.
In its final trading day of May, the Dow fell 122.36 points to 10,136.63, a 1.2 percent decline. The Dow finished down 7.9 percent for the month.
The Standard & Poor’s 500 Index dropped another 1.2 percent on Friday to 1,089.41, as financial shares took a hit after the downgrade of Spain by Fitch Ratings.
You have to go back to 1940 to find a worst performance for the month.
In its final trading day of May, the Dow fell 122.36 points to 10,136.63, a 1.2 percent decline. The Dow finished down 7.9 percent for the month.
The Standard & Poor’s 500 Index dropped another 1.2 percent on Friday to 1,089.41, as financial shares took a hit after the downgrade of Spain by Fitch Ratings.
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