Obbligazioni societarie HIGH YIELD e oltre, verso frontiere inesplorate - Vol. 1
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HeidelbergCement
Moody’s upgrades rating to Ba1 and assigns a “stable” outlook
“Buy” long dated paper (e.g. the HEI 7.5% 04/20 offered at 108.25/Z-spread of 312 bps); “Neutral” on 5Y CDS at 225 bps
Yesterday, Moody’s upgraded the HeidelbergCement corporate family rating by one notch to Ba1 and the rating of its bonds to Ba2 and assigned a “stable” outlook. The action was prompted by the company’s recent decent performance, its favourable geographical exposure, its solid liquidity position and Moody’s expectation of a good performance and further deleveraging in 2011. However, Moody’s also highlighted that the company currently is weakly positioned in the Ba1 category. In principal, we agree with Moody’s and believe the company is on its way back to investment grade, however, do not expect further upgrades any time soon. We estimate net leverage to drop to around 3.3x (3.8x currently) by year-end and believe the company is on track to achieve its leverage target of below 2.8x in the medium term. We continue to see good value in HeidelbergCement’s longer-dated bonds and keep our “buy” recommendation. We keep our “Low Risk” assessment on the LARA scale.
Moody’s upgrades rating to Ba1 and assigns a “stable” outlook
“Buy” long dated paper (e.g. the HEI 7.5% 04/20 offered at 108.25/Z-spread of 312 bps); “Neutral” on 5Y CDS at 225 bps
Yesterday, Moody’s upgraded the HeidelbergCement corporate family rating by one notch to Ba1 and the rating of its bonds to Ba2 and assigned a “stable” outlook. The action was prompted by the company’s recent decent performance, its favourable geographical exposure, its solid liquidity position and Moody’s expectation of a good performance and further deleveraging in 2011. However, Moody’s also highlighted that the company currently is weakly positioned in the Ba1 category. In principal, we agree with Moody’s and believe the company is on its way back to investment grade, however, do not expect further upgrades any time soon. We estimate net leverage to drop to around 3.3x (3.8x currently) by year-end and believe the company is on track to achieve its leverage target of below 2.8x in the medium term. We continue to see good value in HeidelbergCement’s longer-dated bonds and keep our “buy” recommendation. We keep our “Low Risk” assessment on the LARA scale.
Q1/11 earnings review; next coupon payment is doubtful
“Hold” the NOVASP 9.625% at a mid price of 59 or a yield of 24.5%
In line with expectations, Novasep released another set of weak quarterly figures and reiterated its FY 2011 guidance. Revenues decreased by 3.5% to EUR 73.9 mn while adjusted EBITDA slumped by 38.1% to EUR 10.4 mn. The very weak performance of the Synthesis segment was the main catalyst for the weak figures. However, the Process segment reported surging revenues, up by 50.4% to EUR 30.7 mn. Liquidity continued to deteriorate, with cash as of Q1 at EUR 35 mn. Considering that c. EUR 18 mn of coupon payments are due on June 15th and that a minimum cash position to run the business of c. EUR 15-20 mn is needed, we believe there is a relatively high likelihood of the company not paying the next coupon on its bonds on due date (June 15th). Novasep refrained from making comments with regards to the coupon payment in the conference call, although it indicated that its current cash position has not changed much since the end of Q1. Possibly, Novasep will buy itself some time by making use of the 30 days grace period to progress further with talks on the financial restructuring. We keep our “Very High Risk” on the LARA scale for now. While we keep our “hold” recommendation for now, we believe that short term risks for its bonds are more skewed towards the downside. For more details please refer to our Earnings Flash published earlier today.
“Hold” the NOVASP 9.625% at a mid price of 59 or a yield of 24.5%
In line with expectations, Novasep released another set of weak quarterly figures and reiterated its FY 2011 guidance. Revenues decreased by 3.5% to EUR 73.9 mn while adjusted EBITDA slumped by 38.1% to EUR 10.4 mn. The very weak performance of the Synthesis segment was the main catalyst for the weak figures. However, the Process segment reported surging revenues, up by 50.4% to EUR 30.7 mn. Liquidity continued to deteriorate, with cash as of Q1 at EUR 35 mn. Considering that c. EUR 18 mn of coupon payments are due on June 15th and that a minimum cash position to run the business of c. EUR 15-20 mn is needed, we believe there is a relatively high likelihood of the company not paying the next coupon on its bonds on due date (June 15th). Novasep refrained from making comments with regards to the coupon payment in the conference call, although it indicated that its current cash position has not changed much since the end of Q1. Possibly, Novasep will buy itself some time by making use of the 30 days grace period to progress further with talks on the financial restructuring. We keep our “Very High Risk” on the LARA scale for now. While we keep our “hold” recommendation for now, we believe that short term risks for its bonds are more skewed towards the downside. For more details please refer to our Earnings Flash published earlier today.
fabriziof
Forumer storico
nik.sala
Money Never Sleeps
Io mantengo...non vendo in loss, preferisco aspettare...venduta a 58
qquebec
Super Moderator
se zlomrex raggiunge i 100 mi compro questa Oryginalny T-shirt Złomrex Włókniarz Częstochowa (1596269357
Prenotane una anche per me
fabriziof
Forumer storico
ho provato a prendere petrol ,non operativaIo mantengo...non vendo in loss, preferisco aspettare...
nik.sala
Money Never Sleeps
...price ???
controparte dovrebbe essere ING, se chiami dopo le 16 però è dura
fabriziof
Forumer storico
ho chiamato alle 3 .76,75 poi 80,75 non operative...price ???
controparte dovrebbe essere ING, se chiami dopo le 16 però è dura
nik.sala
Money Never Sleeps
a me davano denaro a 76 ieri, boh...
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