Imark
Forumer storico
S&P ha colto l'occasione dell'emissione del recente ultimo bond per pubblicare, insieme con il rating una sintesi della recovery analysis altrimenti disponibile nei recovery report (ormai a pagamento) che reputo di un certo interesse...
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[FONT=Arial, Helvetica, sans-serif]Italy-Based Fiat's €1.25 Billion Senior Unsecured Bond Rated 'BB+'; '3' Recovery Rating Assigned[/FONT]
LONDON (Standard & Poor's) Sept. 9, 2009--Standard & Poor's Ratings Services said today that it has assigned its 'BB+' long-term issue rating to the €1.25 billion senior unsecured bond issued by Fiat Finance & Trade Ltd.--a wholly owned subsidiary of Italian industrial group Fiat SpA (BB+/Negative/B)--under its global medium-term note program.
At the same time, Standard & Poor's assigned a recovery rating of '3' to the bond, indicating its expectation of meaningful (50%-70%) recovery in the event of a payment default. The issue and recovery ratings on the Fiat group's other debt instruments remain unchanged.
"The additional debt, which will be used to bolster the group's liquidity, moderately dilutes recoveries, though to a level still within the indicated range," said Standard & Poor's recovery analyst Marc Lewis. "Other assumptions underpinning our recovery analysis remain unchanged."
The rating on the bond is the same as the long-term corporate credit rating on Fiat, which reflects what we see as the high cyclicality of most of the group's businesses, still fairly high dependence on two markets (Italy and Brazil), and barely adequate liquidity. The corporate credit rating is also supported by our view of the group's good business diversification through agricultural and construction equipment maker CNH Global N.V. (BB+/Negative/--) and truck manufacturer Iveco.
RECOVERY ANALYSIS
All of the senior unsecured debt issues of Fiat Finance & Trade Ltd. and Fiat Finance North America Inc. are rated 'BB+', the same as the corporate credit rating on 100% parent, Fiat SpA. All debt has a recovery rating of '3', indicating Standard & Poor's expectation of "meaningful" (50%-70%) recovery in the event of a payment default.
We have valued the business as a going concern. Given what we see as Fiat's good market positions and well-recognized brands--for which there is significant customer demand and a widespread distribution network--we assume that a default would most likely result from operational underperformance, as well as from a weakening of both liquidity reserves and operating cash flow generation capability.
Our hypothetical default scenario assumes that Fiat would voluntarily file for bankruptcy if it foresaw cash balances dropping below a minimum threshold.
We have valued Fiat at €9 billion-€10 billion at the hypothetical point of default (2012).
Recovery prospects for unsecured noteholders reflect our opinion on both the estimated value available and accessible to the creditors and the likelihood of insolvency proceedings being adversely influenced by Fiat's domicile in Italy. We consider recovery prospects to be underpinned by Fiat's extensive asset base.
For a complete recovery analysis, please see our recovery report "Fiat SpA's Recovery Rating Profile" published June 12, 2009, on RatingsDirect.
La sottopongo ad una vostra valutazione...
[FONT=Arial, Helvetica, sans-serif]Italy-Based Fiat's €1.25 Billion Senior Unsecured Bond Rated 'BB+'; '3' Recovery Rating Assigned[/FONT]
LONDON (Standard & Poor's) Sept. 9, 2009--Standard & Poor's Ratings Services said today that it has assigned its 'BB+' long-term issue rating to the €1.25 billion senior unsecured bond issued by Fiat Finance & Trade Ltd.--a wholly owned subsidiary of Italian industrial group Fiat SpA (BB+/Negative/B)--under its global medium-term note program.
At the same time, Standard & Poor's assigned a recovery rating of '3' to the bond, indicating its expectation of meaningful (50%-70%) recovery in the event of a payment default. The issue and recovery ratings on the Fiat group's other debt instruments remain unchanged.
"The additional debt, which will be used to bolster the group's liquidity, moderately dilutes recoveries, though to a level still within the indicated range," said Standard & Poor's recovery analyst Marc Lewis. "Other assumptions underpinning our recovery analysis remain unchanged."
The rating on the bond is the same as the long-term corporate credit rating on Fiat, which reflects what we see as the high cyclicality of most of the group's businesses, still fairly high dependence on two markets (Italy and Brazil), and barely adequate liquidity. The corporate credit rating is also supported by our view of the group's good business diversification through agricultural and construction equipment maker CNH Global N.V. (BB+/Negative/--) and truck manufacturer Iveco.
RECOVERY ANALYSIS
All of the senior unsecured debt issues of Fiat Finance & Trade Ltd. and Fiat Finance North America Inc. are rated 'BB+', the same as the corporate credit rating on 100% parent, Fiat SpA. All debt has a recovery rating of '3', indicating Standard & Poor's expectation of "meaningful" (50%-70%) recovery in the event of a payment default.
We have valued the business as a going concern. Given what we see as Fiat's good market positions and well-recognized brands--for which there is significant customer demand and a widespread distribution network--we assume that a default would most likely result from operational underperformance, as well as from a weakening of both liquidity reserves and operating cash flow generation capability.
Our hypothetical default scenario assumes that Fiat would voluntarily file for bankruptcy if it foresaw cash balances dropping below a minimum threshold.
We have valued Fiat at €9 billion-€10 billion at the hypothetical point of default (2012).
Recovery prospects for unsecured noteholders reflect our opinion on both the estimated value available and accessible to the creditors and the likelihood of insolvency proceedings being adversely influenced by Fiat's domicile in Italy. We consider recovery prospects to be underpinned by Fiat's extensive asset base.
For a complete recovery analysis, please see our recovery report "Fiat SpA's Recovery Rating Profile" published June 12, 2009, on RatingsDirect.
. Circa 2/3 settimane fa stava sui 104,5.
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