Ba1 News

Ocean Yield has agreed to purchase four LR1 product tankers, to be constructed at Guangzhou Shipyard International (GSI) in China.The vessels will be built with a design enabling them to be converted to dual-fuel operation with methanol as fuel. Upon delivery (in 2026 and 2027), the vessels will commence 15-year bareboat charters to guaranteed subsidiaries of Braskem S.A., a global petrochemical company listed on the New York Stock Exchange and based in Brazil. Braskem S.A. currently has credit ratings of BBB- from S&P and Fitch…

The rating company Moody's Japan K.K. has downgraded  Japanese shipping company Mitsui O.S.K. Lines, Ltd.'s (MOL) corporate family rating to Ba2 from Ba1. The rating outlook is stable."We expect MOL's debt will not decline materially over the next few years and its leverage will likely remain above our downgrade guidance of 7.0x for a Ba1 rating," says Motoki Yanase, a Moody's Vice President and Senior Credit Officer.Moody's sees only a limited possibility for MOL to materially reduce its debt during the next several years, given the expectation that the company will continue to borrow to invest in its growth segments, such as offshore oil and gas infrastructure and LNG carriers.Moody's expects a marginal improvement in profitability measured by EBIT margin over the next few years…

Houston-based energy company Cheniere Energy said that it is nearing completion of its fourth liquefied natural gas unit at its massive Sabine Pass terminal in Louisiana near the Texas border. The company, primarily engaged in LNG-related businesses, owns and operates the Sabine Pass LNG terminal in Louisiana. "Our long-term contract with Gas Natural Fenosa commenced and first LNG production occurred from Train 4 at Sabine Pass," said Jack Fusco, Cheniere's President and CEO. "We are revising our 2017 guidance upward as our operating results year-to-date have exceeded our expectations, primarily due to LNG trains entering service ahead of schedule and the ramp-up in LNG production levels occurring faster than we'd forecast earlier this year.

SCF Group completed a series of financing transactions in the total amount of USD 1.26 billion. The deals include USD 750 million of unsecured public debt and USD 512 million of bank loans raised for purposes of funding the fleet renewal and expansion programme and for the refinancing of maturing debt. The latest in this series were new long-term credit facilities for a total amount of USD 252 million signed in August 2016, with a number of international banks including: Citibank; DVB Bank; ING Bank; Nordea Bank and Unicredit Bank. The funds raised are being used to finance the acquisition of nine ice-class tankers and two multifunctional icebreaking supply vessels as well as for refinancing of the Group’s existing bank debt.

Reviewing the company’s financial and operating results for the first half year ended 30 June 2016, on 23 August 2016, the Executive Board of PAO Sovcomflot (“SCF Group”) noted that despite a tanker market downturn, the company was able to demonstrate strong performance and strengthen its financial position while continuing to enhance its industrial projects portfolio in accordance with its Development Strategy. * Five new vessels launched: pioneering 172,600 m3 capacity ice breaking LNG carrier (Arc7 ice class) for Yamal LNG project (January), three new Arctic shuttle tankers for Novy Port project (February, April, June), and a new ice-breaking supply vessel to serve Sakhalin 2 project (June).

Russian shipping company Sovcomflot has cut the yield on its seven-year U.S. dollar bond to 5.375 percent - 5.5 percent, according to a lead.   The notes will price within that range. The latest level compares with guidance of 5.625 percent area and initial price thoughts of 5.75 percent area.   The benchmark-sized notes are expected to price later today. Citigroup, ING, JP Morgan, Sberbank and VTB Capital are the lead managers.   Sovcomflot is rated Ba1/BB+/BB.     (Reporting by Sudip Roy)

The Port of Palm Beach District announced that Moody’s Investors Service, Inc. upgraded the Port of Palm Beach District senior rating to Baa3 from Ba1, and reported the outlook to be stable. The report, released October 2, 2015, documented the port’s strengths, challenges and recent developments as the agency’s rationale for the ratings upgrade. The upgrade to Baa3 recognizes the port’s sustained financial improvement due to successful contract renewals with its largest customers. The improved margins experienced over the last four fiscal years are expected to continue in the midterm, supported by tenant minimum annual revenue guarantee that improve the port’s cash flow predictability.

Moody's Investors Service upgraded the senior unsecured debt rating of Newport News Shipbuilding Inc. (NNS) to Ba1 from Ba2 to reflect the company's improving operating and cash flow performance, and its strengthening business outlook and balance sheet. The ratings also incorporate its still-weak balance sheet, notwithstanding the recent gradual improvements. Moody's also said that it maintained its Ba1 ratings on the company's bank facilities, which were formerly secured by essentially all of the company's assets. However, in conformance with the credit agreement, the collateral was recently released, and the bank facilities rank equally with the company's other senior unsecured debt.

Moody's Investors Service today confirmed the Ba3 rating for senior notes of Stena AB ("Stena") and changed the outlook for its ratings to negative from stable. The Ba3 rating reflects the company's increased exposure to the European ferry industry and higher financial risk as a result of the acquisition of a 100 percent ownership in Stena Line AB. At the same time, Moody's confirmed Stena's Ba2 senior implied rating, and also Stena International BV's senior secured bank loan rating of Ba1. The negative outlook for the ratings reflects Moody's concerns that Stena may not be able to substantially improve the performance of its ferry operations near term. With that, Moody's concludes the review of Stena's ratings for possible downgrade it initiated on November 1, 2000.

Moody's Investors Service changed to stable from negative the outlook of its Ba1 senior unsecured debt rating and (P)Ba1 Japanese shelf registration rating of Mitsui O.S.K. Lines, Ltd. (MOL) and Ba1 debt ratings of Euromol B.V. and Mitsui O.S.K. Finance plc. The latter two companies are MOL's overseas finance subsidiaries supported by keepwell agreements with MOL. This rating outlook change is based on Moody's belief that MOL's improving performance will continue to contribute to its earnings and the company's financial fundamentals will be strengthened in the near to medium term. Although MOL's debt level increased marginally after its April 1999 merger with Navix Line…

Moody's Investors Service upgraded the senior unsecured debt rating of Newport News Shipbuilding, Inc. (NNS) to Ba1 from Ba2 to reflect the company's improving operating and cash flow performance, and its strengthening business outlook and balance sheet, Moody's reported. The ratings also incorporate its still-weak balance sheet, notwithstanding the recent gradual improvements. Positive cash flows have led to reduced debt levels, Moody's said, which together with its expanded equity base (through retained profits), have led to a somewhat stronger, albeit still leveraged balance sheet. The company's outlook has also improved as a result of the resurgence of growth in the U.S. defense spending.