Topgun1976
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t1 cumulativo 30 june 2015 call
Ultima modifica di un moderatore:
Obbligazioni perpetue e subordinate Tutto quello che avreste sempre voluto sapere sulle obbligazioni perpetue... - Cap. 3 (6 lettori)
- Creatore Discussione Joe Silver
- Data di Inizio
t1 cumulativo 30 june 2015 call
Topgun1976
Guest
London, 15 April 2014 -- Moody's Investors Service has today placed on review for downgrade the Baa1 issuer rating of Suedzucker AG ('Suedzucker' or 'the group') and its wholly owned and guaranteed subsidiary Suedzucker International Finance B.V., as well as the Ba1 deeply subordinated debt rating. The Prime-2 (P-2) short term commercial paper rating of Suedzucker AG and Suedzucker International Finance B.V. is not affected.
RATINGS RATIONALE
"Today's rating action is triggered by Suedzucker's announcement of 8 April 2014 where the company stated that it expects a significant earnings decrease in FY2014/2015 (1 March 2014 to 28 February 2015)." says Sven Reinke, a Moody's Vice President -- Senior Analyst and lead analyst for Suedzucker. Suedzucker expects a decline in revenues of approximately 7% on a comparable basis and a reduction in operating profit to EUR200 million for the current financial year (including a negative EUR40 million impact from an IFRS 11 accounting change regarding the consolidation method for joint ventures), as the company's key Sugar and CropEnergies segments are impacted by an increasingly deteriorating environment in the European sugar and bioethanol markets.
After a number of years of improving operating performance that together with a conservative financial policy enabled Suedzucker to strengthen its credit profile, the company announced a significantly lower operating profit of EUR658 million for FY2013/2014 (1 March 2013 to 28 February 2014) down from EUR972 million in the previous year. Additionally, the company recorded restructuring and special items of EUR116 million, mainly driven by the costs of the fine related to the German anti-trust case that was only partially offset by the refund claim of overpaid production levies in sugar marketing years 2001/02 to 2005/06. However, the results are broadly in line with Moody's expectations and are fully reflected in Suedzucker's current rating. Moody's changed the outlook to stable from positive in November 2013 in anticipation of lower earnings and the uncertainties surrounding the reform of EU sugar market regulation to take place in 2017. Moody's stated in November 2013 that the group remained strongly positioned for the Baa1 rating with financial flexibility that might be used over time for bolt-on acquisitions.
The significant reduction in expected revenues and earnings for the current financial year are outside Moody's expectations and could weaken Suedzucker's financial profile beyond levels that are considered acceptable for the current rating category. The reduction in expected earnings could potentially signal a more sustained transition in the credit quality of the company. However, potential measures from the company with regard to cost efficiencies and financial policy decisions could partially offset the effect of the forecasted profit deterioration.
Moody's review will focus mainly on (1) the impact of the deteriorating economic environment in the European sugar and bioethanol markets on Suedzucker's financial profile; (2) the company's measures to improve its cost structure that is currently under review; (3) the longer term effects of the reform of the EU sugar market regulation -- the EU commission announced in June 2013 that the current EU sugar regime will be abolished in September 2017 in favour of market liberalisation; and (4) Suedzucker's financial policy decisions with regard to shareholder remuneration and potential bolt-on acquisitions.
STRUCTURAL CONSIDERATIONS
The Ba1 junior subordinated instrument rating remains three notches lower than Suedzucker's Baa1 issuer rating and continues to reflect the loss absorption characteristics of the rated instrument (which continues to receive Basket D treatment), including (1) its deeply subordinated and perpetual nature; (2) the presence of a mandatory non-cumulative coupon suspension linked to a breach of a strong trigger (consolidated cash flow of the company is less than 5% of the consolidated sales revenues); and (3) an optional cumulative deferral if no dividends are paid.
WHAT COULD CHANGE THE RATING UP/DOWN
In view of today's action, Moody's does not currently anticipate any upward rating pressure. However, prior to the review process being initiated, Moody's had indicated that upward pressure on the rating would likely result if 1) Suedzucker maintains adjusted leverage sustainably below 2.25x and adjusted RCF/net debt sustainably above 35%; and (2) the group building on its cash balances and financial flexibility cushion to ensure that it can sustain strong credit metrics (i) through EU sugar campaigns and (ii) over the short- to medium-term, as Moody's notes that earnings volatility is likely to increase in the Sugar segment following the recent change to EU sugar regulations, with the abolishment of the sugar quota-regime in September 2017.
Prior to initiating the review, Moody's had indicated that downward pressure on the rating could arise if the group's profitability weakens substantially, or financial policies relax, resulting in adjusted leverage rising significantly above 3.0x and adjusted RCF/net debt remaining sustainably below 25%.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was the Global Protein and Agriculture Industry published in May 2013 and Revisions to Moody's Hybrid Tool Kit published in July 2010. Please see the Credit Policy page on www.moodys.com for a copy of these methodologies.
Based in Mannheim, Germany, Suedzucker AG is Europe's largest sugar producer. It additionally operates in the Special Products, CropEnergies and Fruit segments and posted EUR7.9 billion in revenues for the fiscal year ended February 2013 (FY2012/13).
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this rating action, and whose ratings may change as a result of this rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.
Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.
Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.
RATINGS RATIONALE
"Today's rating action is triggered by Suedzucker's announcement of 8 April 2014 where the company stated that it expects a significant earnings decrease in FY2014/2015 (1 March 2014 to 28 February 2015)." says Sven Reinke, a Moody's Vice President -- Senior Analyst and lead analyst for Suedzucker. Suedzucker expects a decline in revenues of approximately 7% on a comparable basis and a reduction in operating profit to EUR200 million for the current financial year (including a negative EUR40 million impact from an IFRS 11 accounting change regarding the consolidation method for joint ventures), as the company's key Sugar and CropEnergies segments are impacted by an increasingly deteriorating environment in the European sugar and bioethanol markets.
After a number of years of improving operating performance that together with a conservative financial policy enabled Suedzucker to strengthen its credit profile, the company announced a significantly lower operating profit of EUR658 million for FY2013/2014 (1 March 2013 to 28 February 2014) down from EUR972 million in the previous year. Additionally, the company recorded restructuring and special items of EUR116 million, mainly driven by the costs of the fine related to the German anti-trust case that was only partially offset by the refund claim of overpaid production levies in sugar marketing years 2001/02 to 2005/06. However, the results are broadly in line with Moody's expectations and are fully reflected in Suedzucker's current rating. Moody's changed the outlook to stable from positive in November 2013 in anticipation of lower earnings and the uncertainties surrounding the reform of EU sugar market regulation to take place in 2017. Moody's stated in November 2013 that the group remained strongly positioned for the Baa1 rating with financial flexibility that might be used over time for bolt-on acquisitions.
The significant reduction in expected revenues and earnings for the current financial year are outside Moody's expectations and could weaken Suedzucker's financial profile beyond levels that are considered acceptable for the current rating category. The reduction in expected earnings could potentially signal a more sustained transition in the credit quality of the company. However, potential measures from the company with regard to cost efficiencies and financial policy decisions could partially offset the effect of the forecasted profit deterioration.
Moody's review will focus mainly on (1) the impact of the deteriorating economic environment in the European sugar and bioethanol markets on Suedzucker's financial profile; (2) the company's measures to improve its cost structure that is currently under review; (3) the longer term effects of the reform of the EU sugar market regulation -- the EU commission announced in June 2013 that the current EU sugar regime will be abolished in September 2017 in favour of market liberalisation; and (4) Suedzucker's financial policy decisions with regard to shareholder remuneration and potential bolt-on acquisitions.
STRUCTURAL CONSIDERATIONS
The Ba1 junior subordinated instrument rating remains three notches lower than Suedzucker's Baa1 issuer rating and continues to reflect the loss absorption characteristics of the rated instrument (which continues to receive Basket D treatment), including (1) its deeply subordinated and perpetual nature; (2) the presence of a mandatory non-cumulative coupon suspension linked to a breach of a strong trigger (consolidated cash flow of the company is less than 5% of the consolidated sales revenues); and (3) an optional cumulative deferral if no dividends are paid.
WHAT COULD CHANGE THE RATING UP/DOWN
In view of today's action, Moody's does not currently anticipate any upward rating pressure. However, prior to the review process being initiated, Moody's had indicated that upward pressure on the rating would likely result if 1) Suedzucker maintains adjusted leverage sustainably below 2.25x and adjusted RCF/net debt sustainably above 35%; and (2) the group building on its cash balances and financial flexibility cushion to ensure that it can sustain strong credit metrics (i) through EU sugar campaigns and (ii) over the short- to medium-term, as Moody's notes that earnings volatility is likely to increase in the Sugar segment following the recent change to EU sugar regulations, with the abolishment of the sugar quota-regime in September 2017.
Prior to initiating the review, Moody's had indicated that downward pressure on the rating could arise if the group's profitability weakens substantially, or financial policies relax, resulting in adjusted leverage rising significantly above 3.0x and adjusted RCF/net debt remaining sustainably below 25%.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was the Global Protein and Agriculture Industry published in May 2013 and Revisions to Moody's Hybrid Tool Kit published in July 2010. Please see the Credit Policy page on www.moodys.com for a copy of these methodologies.
Based in Mannheim, Germany, Suedzucker AG is Europe's largest sugar producer. It additionally operates in the Special Products, CropEnergies and Fruit segments and posted EUR7.9 billion in revenues for the fiscal year ended February 2013 (FY2012/13).
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this rating action, and whose ratings may change as a result of this rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.
Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.
Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.
NoWay
It's time to play the game
Ieri era a 100,5 ask..
E poco fa era quasi a 104...
Topgun1976
Guest
Qui le caratteristiche del T1
The Ba1 junior subordinated instrument rating remains three notches lower than Suedzucker's Baa1 issuer rating and continues to reflect the loss absorption characteristics of the rated instrument (which continues to receive Basket D treatment), including (1) its deeply subordinated and perpetual nature; (2) the presence of a mandatory non-cumulative coupon suspension linked to a breach of a strong trigger (consolidated cash flow of the company is less than 5% of the consolidated sales revenues); and (3) an optional cumulative deferral if no dividends are paid
A me sembra massacrato esageratamente,diciamo che i problemi potrebbero arrivare nel 2017
NoWay
It's time to play the game
Perché nel 2017?
GiveMeLeverage
& I will remove the world
wartburg_12
forumer storico
( Ciao ! )what mean this ??????????? IO non raccatto una fava
) ) IO li comprai a 103, tanto investii e null'altro. ← PUNTO Ciao !
mmmhhhhh mi pare che di ciò si sia già parlato ... sorry se sò de coccio, NON chiedo di ri-spiegarmi perchè DOVREBBE essere così ... per quanto mi riguarda continuo a pensare che tanto ho dato, e tanto rende. ← PUNTO
(oh, niuna critica peccarità !!!
)
NoWay
It's time to play the game
OT dedicato a Top...
Juventus F.C.: Buffon, juventino non considera ipotesi addio Conte
MILANO (MF-DJ)--"Conte a fine ciclo? È un'ipotesi che uno juventino non prende neanche in considerazione".
Così Gianluigi Buffon, capitano della Juventus F.C., ha commentato, in occasione di un evento organizzato nell'ambito di Wired Next Fest, i rumors secondo i quali l'allenatore Antonio Conte potrebbe lasciare la squadra che da tre anni domina il campionato italiano.
Juventus F.C.: Buffon, juventino non considera ipotesi addio Conte
MILANO (MF-DJ)--"Conte a fine ciclo? È un'ipotesi che uno juventino non prende neanche in considerazione".
Così Gianluigi Buffon, capitano della Juventus F.C., ha commentato, in occasione di un evento organizzato nell'ambito di Wired Next Fest, i rumors secondo i quali l'allenatore Antonio Conte potrebbe lasciare la squadra che da tre anni domina il campionato italiano.
solovaloreaggiunto
Forumer storico
guardate che Suedz ha detto che non richiamera' nel 2015 ,..ecco perche' sta venendo giu..
Alongside its final FY13/14 results, Südzucker (SZUGR) announced yesterday that its current preference is for not calling the SZUGR 5.25% perp (€700m) at the first call date (30 June 2015). The group had been guiding previously that three options were under consideration: 1) an open market tender, 2) a call in June 2015 (subject to the issuance of another hybrid within the 12 months preceding the first call date), or 3) take no action, i.e. not call with the coupon becoming variable after the first call date based on 3m Euribor+310bp. We have long held the view that replacing the existing perp by an instrument with similar terms would be significantly more expensive for SZUGR than leaving the current hybrid outstanding. .Hence, we are not surprised by SZUGR's decision. This is yet another reminder that investors should de-emphasise the importance of reputational risk when investing in corporate hybrids and instead focus on the economics of the call and extension risk.
Alongside its final FY13/14 results, Südzucker (SZUGR) announced yesterday that its current preference is for not calling the SZUGR 5.25% perp (€700m) at the first call date (30 June 2015). The group had been guiding previously that three options were under consideration: 1) an open market tender, 2) a call in June 2015 (subject to the issuance of another hybrid within the 12 months preceding the first call date), or 3) take no action, i.e. not call with the coupon becoming variable after the first call date based on 3m Euribor+310bp. We have long held the view that replacing the existing perp by an instrument with similar terms would be significantly more expensive for SZUGR than leaving the current hybrid outstanding. .Hence, we are not surprised by SZUGR's decision. This is yet another reminder that investors should de-emphasise the importance of reputational risk when investing in corporate hybrids and instead focus on the economics of the call and extension risk.