Moodys Corporation (NYSE: MCO), Big Lots, Inc. (NYSE: BIG), Groupon (NASDAQ: GRPN), Ingersoll-Rand (NYSE: IR), Research In Motion (NASDAQ: RIMM), CVS Caremark (NYSE: CVS) and Rackspace Hosting, Inc. (NYSE: RAX) had ratings and price targets on them adjusted by analysts.
JPMorgan Chase & Co. (NYSE:JPM) initiated coverage on Big Lots, Inc. (BIG). They placed a “Neutral” rating and a price target of $48.00 on the company.
Groupon (GRPN) had its “Buy” rating reiterated by Goldman Sachs (NYSE:GS).
Ingersoll-Rand (IR) had its “Buy” rating reiterated by Jefferies Group (NYSE:JEF).
Research In Motion (RIMM) had its “Hold” rating reiterated by Canaccord Genuity.
CVS Caremark (CVS) had its price target raised by Goldman Sachs (NYSE:GS) from $46.00 to $48.00. They have a “Buy” rating on the company.
Moodys Corporation (MCO) had its price target raised by JPMorgan Chase & Co. (NYSE:JPM) from $43.00 to $45.00. They have an “Overweight” rating on the company.
Rackspace Hosting, Inc. (RAX) had its price target raised by Evercore Partners from $52.00 to $58.00. They have an “Overweight” rating on the company.
Showing posts with label Moody's. Show all posts
Showing posts with label Moody's. Show all posts
Friday, February 10, 2012
Monday, September 27, 2010
Moody's (NYSE:MCO) Says BP (NYSE:BP) Credit Swaps Trading at Investment Grade
According to the market research arm of Moody’s Investors Service (NYSE:MCO), BP (NYSE:BP) credit default swaps are trading at investment-grade levels.
BP debt protected by credit default for a five year period dropped 3.4 basis points to 188.5 shortly after 11:00 AM EDT in New York, according to CMA, a provider of data for the industry. CMA data reveal the CDS contracts have dropped 681 basis points since June 16.
Trading levels imply the company is trading at a rating of Baa3, while Moody's has a rating of A2 on the debt, four levels about the implied rating.
Baa3 is the lowest rung of the investment-grade rating system of Moody's.
BP debt protected by credit default for a five year period dropped 3.4 basis points to 188.5 shortly after 11:00 AM EDT in New York, according to CMA, a provider of data for the industry. CMA data reveal the CDS contracts have dropped 681 basis points since June 16.
Trading levels imply the company is trading at a rating of Baa3, while Moody's has a rating of A2 on the debt, four levels about the implied rating.
Baa3 is the lowest rung of the investment-grade rating system of Moody's.
Monday, September 20, 2010
Moody's (NYSE:MCO) Maintaining BP's (NYSE:BP) Rating
Moody's (NYSE:MCO) they have no further downgrades for oil giant BP's (NYSE:BP) credit rating, adding they continue to see the outlook for the company as stable.
The company said, "Today's (Friday) rating action concludes the review for possible downgrade of BP's ratings that Moody's initiated on 3 June."
With the oil well permanently plugged, and the liabilities becoming a little clearer and able to be somewhat estimated, the current A2 credit rating will stay in place "under a range of likely outcomes for the ultimate total costs resulting from the oil spill," said Moody's.
That's not to say there won't be future credit pressures as the costs from claims and lawsuits mount up for BP, but the downgrading of several notches has included those factors in those actions Moody's took recently.
In other words, there could be more downgrades in the future, but in the short term the credit rating should remain where it is for the company.
The company said, "Today's (Friday) rating action concludes the review for possible downgrade of BP's ratings that Moody's initiated on 3 June."
With the oil well permanently plugged, and the liabilities becoming a little clearer and able to be somewhat estimated, the current A2 credit rating will stay in place "under a range of likely outcomes for the ultimate total costs resulting from the oil spill," said Moody's.
That's not to say there won't be future credit pressures as the costs from claims and lawsuits mount up for BP, but the downgrading of several notches has included those factors in those actions Moody's took recently.
In other words, there could be more downgrades in the future, but in the short term the credit rating should remain where it is for the company.
Tuesday, September 14, 2010
Moody's (NYSE:MCO): PG&E (NYSE:PCG) Credit Remains Intact After Explosion
Moody's Investors Service (NYSE:MCO) said the natural gas pipeline explosion in San Bruno won't have an affect on the credit rating of Pacific Gas & Electric Co. (NYSE:PCG).
It is thought the $992 million in insurance PG&E has will be adequate to cover the expenses, even with the relatively small $10 million deductible.
Last week, Standard & Poor's said they have PG&E rating on review for a potential downgrade, although it's unsure what they're seeing which would justify that, at least in the short term.
Moody's said they are maintaining a "Baa1" senior unsecured debt rating on PG&E and an "A3" senior unsecured debt rating on the subsidiary of the energy company.
The outlook by Moody's for PG&E and its subsidiary remains "Stable."
It is thought the $992 million in insurance PG&E has will be adequate to cover the expenses, even with the relatively small $10 million deductible.
Last week, Standard & Poor's said they have PG&E rating on review for a potential downgrade, although it's unsure what they're seeing which would justify that, at least in the short term.
Moody's said they are maintaining a "Baa1" senior unsecured debt rating on PG&E and an "A3" senior unsecured debt rating on the subsidiary of the energy company.
The outlook by Moody's for PG&E and its subsidiary remains "Stable."
Thursday, August 19, 2010
Transocean's (NYSE:RIG) Rating Cut to "Baa3" by Moody's (NYSE:MCO)
Moody's (NYSE:MCO) cut the senior unsecured rating of Transocean (NYSE:RIG) from Baa2 to Baa3.
Moody's vice president Ken Austin, said in a statement, "The downgrade to Baa3 reflects Moody's view that Transocean potentially faces significant liability exposure due to its involvement in the blowout and subsequent oil spill from the Macondo well and a concern as to whether it will be fully protected under its indemnification from BP."
The short-term rating of the company was also downgraded from "Prime-2" to "Prime-3."
As of June 30, Transocean had close to $2.88 billion in cash on hand, and Moody's said with that, they could handle up to $6 billion in obligations if they had to.
If the obligations of Transocean exceed $6 billion, they would have to take on new debt to meet them, and that would hurt the company in relationship to retaining its investment-grade rating.
Moody's vice president Ken Austin, said in a statement, "The downgrade to Baa3 reflects Moody's view that Transocean potentially faces significant liability exposure due to its involvement in the blowout and subsequent oil spill from the Macondo well and a concern as to whether it will be fully protected under its indemnification from BP."
The short-term rating of the company was also downgraded from "Prime-2" to "Prime-3."
As of June 30, Transocean had close to $2.88 billion in cash on hand, and Moody's said with that, they could handle up to $6 billion in obligations if they had to.
If the obligations of Transocean exceed $6 billion, they would have to take on new debt to meet them, and that would hurt the company in relationship to retaining its investment-grade rating.
Wednesday, August 11, 2010
Anadarko (NYSE:APC) in $2 Billion Bond Issue
Anadarko Petroleum (NYSE:APC), who is a 25 percent partner in the Macondo oil well with BP (NYSE:BP), issued $2 billion in bonds on Monday. Arranging the sell were JPMorgan (NYSE:JPM) and Barclays Capital (NYSE:BCS).
Anadarko said the capital will be used to refinance existing bank debt, which is at about $1.3 billion.
The energy company will also drop a prior commitment to a $1.5 billion senior secured term loan facility.
The bonds will mature in seven years, with a yield of 6.375 percent, down from the asking price of $6.5 percent.
Moody's (NYSE:MCO) maintains a “Ba1" rating on Anadarko debt, which is considered to be speculative.
Anadarko said the capital will be used to refinance existing bank debt, which is at about $1.3 billion.
The energy company will also drop a prior commitment to a $1.5 billion senior secured term loan facility.
The bonds will mature in seven years, with a yield of 6.375 percent, down from the asking price of $6.5 percent.
Moody's (NYSE:MCO) maintains a “Ba1" rating on Anadarko debt, which is considered to be speculative.
Tuesday, July 20, 2010
BP (NYSE:BP) Oil Leak Damage Causing Loss of 17,000 Jobs
According to Moody's analytics report, BP's (NYSE:BP) oil leak damage is not only effecting oceans and wildlife, it's also causing the loss of 17,000 jobs in the Gulf Coast. Also being lost is almost $1.2 billion in the regions economic growth by the end of the year. Even if the best case scenario plays out with the Macondo well being permanently fixed next month.
The other scenario is the Presidents six month moratorium gets pushed through, extended, and the leaking well continues spewing its toxic crude oil through the end of the year. Then the financial losses will be almost $7.5 billion and well over 100,000 jobs lost.
The hardest hit areas will be Florida, which relies on high tourism and Louisiana whose whole livelihood lies in fishing, oil extraction, and aquaculture. The other states, Texas, Mississippi, and Alabama will also feel the impact but on a much smaller scale.
The other scenario is the Presidents six month moratorium gets pushed through, extended, and the leaking well continues spewing its toxic crude oil through the end of the year. Then the financial losses will be almost $7.5 billion and well over 100,000 jobs lost.
The hardest hit areas will be Florida, which relies on high tourism and Louisiana whose whole livelihood lies in fishing, oil extraction, and aquaculture. The other states, Texas, Mississippi, and Alabama will also feel the impact but on a much smaller scale.
Wednesday, June 23, 2010
Anadarko (NYSE:APC) Bonds Hit Hard
Anadarko Petroleum's (NYSE:APC) bond market have been hit hard. This drop happened after Moody decreased its credit rating of Anadarko one level to Bb1. This is one step below investment grade.
The securities due in 2016 were at 5.95 percent, the decline of 2.7 cents brought it to 88.1 cents on the dollar, yielding 8.45 percent. The day before the spill April 19th, the notes traded at 110.9 cents and then fell to 87.5 cents on the dollar.
Robert Gwin, chief financial advisor for Anadarko said the downgrade, "is very disappointing and surprising in light of Anadarko's limited role as a non-operating investor in the Macondo well."
Brookfield's Levington said, "I think the credit markets have downgraded all of the spill companies by several notches. The ratings agencies are trying to catch up with what the markets have already done."
Friday, June 18, 2010
BP (NYSE:BP) Credit, Third Downgrade By Moody's
BP's (NYSE:BP) credit rating has been hit with its third downgrade from the rating agency Moody's Investors Service on Friday. They said, "Moody's updated assessment is that the spill will have a sustained negative impact on the groups free cash flow generation and overall financial profile for a number of years." BP dropped from Aa2 to A2, June 3 decline was from Aa1 to Aa2.
Standard and Poors 500 also lowered their rating of BP on Thursday. This is the second downgrade they have given BP in a month from an A to A-1. On Tuesday, Fitch also dropped their rating six notches of BP's long term debt to just above junk level.
David Staples, managing director of Moody's Corporate finance group said," the oil leak has to stop. As long as the oil leak continues, the costs continue to mount and the exposure to litigation continues. BP declined to comment on the downgrade. Staples did say that BP would remain on close review for further future downgrades.
Bryon Grote, BP's Chief Financial officer did say on Wednesday that he hoped the deal struck with the White House would help reinforce their prior rating of AA from Moody's.
Standard and Poors 500 also lowered their rating of BP on Thursday. This is the second downgrade they have given BP in a month from an A to A-1. On Tuesday, Fitch also dropped their rating six notches of BP's long term debt to just above junk level.
David Staples, managing director of Moody's Corporate finance group said," the oil leak has to stop. As long as the oil leak continues, the costs continue to mount and the exposure to litigation continues. BP declined to comment on the downgrade. Staples did say that BP would remain on close review for further future downgrades.
Bryon Grote, BP's Chief Financial officer did say on Wednesday that he hoped the deal struck with the White House would help reinforce their prior rating of AA from Moody's.
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