Obbligazioni societarie HIGH YIELD e oltre, verso frontiere inesplorate - Vol. 2 (3 lettori)
- Creatore Discussione gionmorg
- Data di Inizio
fedro10
è la somma che fa il totale...
Announcement:
Moody's says AT&T's ratings remain on review for downgrade following court decision
13 Jun 2018
New York, June 13, 2018 -- Moody's Investors Service (Moody's) said the ratings of AT&T Inc. (AT&T, Baa1 review for downgrade) remain on review for downgrade following the June 12 ruling in favor of AT&T by Judge Richard Leon of United States District Court for the District of Columbia (DC District Court) in a suit to block the merger of AT&T and Time Warner Inc. (Time Warner, Baa2 stable) brought by the Department of Justice's Antitrust Division's (DOJ) on behalf of the US Government (the Government). Although Judge Leon ruled that the Government failed to meet its burden to establish that the proposed merger lessened competition substantially, and allowed for the merger to effectively proceed without any conditions attached, Moody's cannot conclude our review for downgrade until the Government's response to this decision is made clear. The DOJ's antitrust chief, Makan Delrahim, indicated that he would review the DC District Court's opinion before deciding whether the Government would ask a higher court to issue a stay of the ruling.
There are several scenarios that would allow for a conclusion of the review. Given the current termination date of the merger agreement of June 21, 2018, a stay of the ruling could cause Time Warner to forego extending the agreement and seek other suitors instead, allowing for conclusion. If Time Warner agreed to extend the termination date under a stay, the review would continue. If the ruling is not stayed, the merger would clearly be consummated and the review would be concluded. In a scenario in which the Government appeals but does not secure a stay of the ruling, we would expect the merger to be consummated and our review completed.
Moody's review is focused on AT&T's pro forma capital structure and its willingness and ability to reduce leverage back towards 3x (Moody's adjusted), AT&T's current limit for its Baa1 rating. The deal's financing costs will consume the majority of acquired free cash flow due to incremental annual dividends and interest expense on acquisition-related debt. Moody's believes that given AT&T's limited excess cash after dividends and modest EBITDA growth potential, that organic leverage reduction is limited to around 0.1x to 0.2x annually. Asset sales could accelerate this trajectory, including segments of AT&T or Time Warner.
Moody's says AT&T's ratings remain on review for downgrade following court decision
13 Jun 2018
New York, June 13, 2018 -- Moody's Investors Service (Moody's) said the ratings of AT&T Inc. (AT&T, Baa1 review for downgrade) remain on review for downgrade following the June 12 ruling in favor of AT&T by Judge Richard Leon of United States District Court for the District of Columbia (DC District Court) in a suit to block the merger of AT&T and Time Warner Inc. (Time Warner, Baa2 stable) brought by the Department of Justice's Antitrust Division's (DOJ) on behalf of the US Government (the Government). Although Judge Leon ruled that the Government failed to meet its burden to establish that the proposed merger lessened competition substantially, and allowed for the merger to effectively proceed without any conditions attached, Moody's cannot conclude our review for downgrade until the Government's response to this decision is made clear. The DOJ's antitrust chief, Makan Delrahim, indicated that he would review the DC District Court's opinion before deciding whether the Government would ask a higher court to issue a stay of the ruling.
There are several scenarios that would allow for a conclusion of the review. Given the current termination date of the merger agreement of June 21, 2018, a stay of the ruling could cause Time Warner to forego extending the agreement and seek other suitors instead, allowing for conclusion. If Time Warner agreed to extend the termination date under a stay, the review would continue. If the ruling is not stayed, the merger would clearly be consummated and the review would be concluded. In a scenario in which the Government appeals but does not secure a stay of the ruling, we would expect the merger to be consummated and our review completed.
Moody's review is focused on AT&T's pro forma capital structure and its willingness and ability to reduce leverage back towards 3x (Moody's adjusted), AT&T's current limit for its Baa1 rating. The deal's financing costs will consume the majority of acquired free cash flow due to incremental annual dividends and interest expense on acquisition-related debt. Moody's believes that given AT&T's limited excess cash after dividends and modest EBITDA growth potential, that organic leverage reduction is limited to around 0.1x to 0.2x annually. Asset sales could accelerate this trajectory, including segments of AT&T or Time Warner.
fabriziof
Forumer storico
Default credo ,cerca in rete
londonwhale
Forumer storico
Venduto ieri tesla 2025, tra $ e bond direi un buon gain....
iguanito
Forumer storico
Infatti!! A conferma di come la teoria sui cambi spesso non trova riscontro nella pratica.
veltroni
Forumer storico
Sembra stia leggermente risalendo peraltro domani cedola; sono indeciso se vendere