Over the next 12 to 18 months, Moody's expects the company's consolidated funds from operations to net debt to improve to the mid 7 per cent range, which is above -- but would remain close to -- the minimum tolerance level of 7 per cent set for the bonds' Baa3 ratings
, after factoring in additional debt to be incurred to help fund capital expenditure.
For details of Moody's rating action and review of the sovereign rating, please see the related press release: Moody's places South Africa's Baa3 ratings
on review for downgrade.
"At the same time, we've retained the Baa3 ratings
on its forex senior unsecured outstanding debt raised through this branch," Moody's added.
AGA's Baa3 ratings
are currently supported by low leverage as measured by debt/EBITDA of around 2.2x following the successful repurchase in September 2015 of $779 million of the company's $1.25 billion 8.5% notes due 2020 using sale proceeds from its CC&V mine.
IEC's Baa3 ratings
reflect (1) the critical role of IEC as supplier of substantially all electricity used within Israel; (2) the rating agency's assumption that there is very high probability of government support for the company, but also a very high default dependence, that is to say a very high tendency for the two entities to be jointly susceptible to adverse circumstances; (3) IEC's limited financial flexibility and its strengthened but still weak liquidity; (4) IEC's high leverage and significant ongoing refinancing needs; and (5) uncertainties around the timing and implications of the market reform in the electricity sector.
"Our Baa3 ratings
are based on Koc Holding's strong financial profile and investments in a balanced portfolio of mature and high-growth companies, which enable Koc to diversify its dividend income," says Rehan Akbar, an Analyst in Moody's Corporate Finance Group and analyst for Koc Holding.
The Baa3 ratings
benefit from a two-notch uplift from the Ba2 standalone level given Hyundai Motor Group's readiness and ability to back Hyundai Steel, whose importance to the group's value chain has grown, Moody's noted.
Nevertheless, Moody's said the current Baa3 ratings
also reflect an assumption of a very high probability of government support, given that IEC generates substantially all electricity used in the country.
Moody's says that the current Baa3 ratings
are sustained by the company's diversified global operations, the expected growth in international container traffic as well as solid profitability and a strong liquidity profile.
Moody's pointed out that the Baa3 ratings
were sustained by the company's diversified global operations, the expected growth in international container traffic as well as solid profitability and a strong liquidity profile.
Moody's Investors Service has changed Thursday the outlook on the Bulgarian government's Baa3 ratings
from stable to positive.
and Baa3 ratings
for other Daiwa Securities Group's overseas subsidiaries.