Moody's cuts Home Depot's ratings on buyback program

(Reuters) - A key factor in Moody's rating action was the significant
increase in leverage that will occur following the buybacks,
the credit agency said in a statement.




Moody's cut Home Depot's senior unsecured debt rating four
notches to "Baa1," the third-lowest investment grade, from
"Aa3."


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Little threat to Asia from U.S. subprime: Moody's

(Reuters) - Moody's cut ratings on 399 mortgage-backed securities and said it may cut ratings on further 32, affecting $5.2 billion in debt.




Standard & Poor's said it may cut ratings on $12 billion of subprime-related debt on forecasts of more delinquent and defaulted U.S. home loans.


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Subprime worries quickly reshaping rate ideas

(Reuters) - Short-term interest rate futures, which measure market expectations of likely Fed policy, jumped on Tuesday after Standard & Poors said it might cut $12 billion in debt tied to subprime mortgages.




Rival Moody's Investor Services later said it had cut ratings of 399 mortgage-backed securities and was eyeing downgrades on another 32.


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UPDATE 1 - Fitch cuts Hilton's debt rating on acquisition

(Reuters) - Another agency, Moody's Investors Service, said it may cut
Hilton's ratings and will base its decision on the company's
capital structure when the deal closes.




Blackstone agreed on Tuesday to buy Hilton for about $20
billion plus debt, the richest in a series of recent private
equity offers for hotel companies. For details see
[ID:nN03234692].


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Moody's warns about private equity buyout risks

(Reuters) - In a leveraged buyout, private equity firms increase debt
at a target firm substantially, using mostly debt proceeds and
a small portion of their own equity to fund the acquisition.




In the past, private equity firms were expected to recoup
their investment by taking a company public again or selling
it, but this is no longer the case, Moody's said.


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Moody's sees threats to sky-high pharma ratings

(Reuters) - Strong cashflows, healthy profits and low leverage remain
the norm in the sector for now but Moody's reckons the outlook
is "moderately negative", given looming threats to key patents,
likely further acquisitions and shareholder calls for buybacks.




In a new report on European pharmaceutical companies, the
agency forecasts a long-term negative bias in rating trends for
these issuers.


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Dollar near 26-year low vs pound as ECB, BoE awaited

(Reuters) - The dollar held near a 26-year low against the pound on Wednesday and a two-month trough versus the euro, with trade quiet around the U.S. Independence Day holiday as investors awaited key central bank verdicts later this week.

The yen edged up after ratings agency Moody's said it may upgrade Japan's sovereign rating of A2, saying the country had reached an "inflection point" in the government's efforts to improve its massive debt.


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Moody's, S&P may cut Nuveen on leveraged buyout

(Reuters) - Moody's said a multi-notch downgrade is possible and the
debt cold be cut into junk territory. Moody's currently rates
Nuveen's senior debt "Baa1," the third lowest investment-grade
rating.




"While precise terms are unclear at this time, there are
reasonable indications that the company will be incurring a
material increase in debt," Moody's said in a statement.


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JPMorgan to sell 5-year senior bond in A$ debut

(Reuters) - Indicative pricing is 20 basis points over swap.




The issuer is also considering a 10-year subordinated bond
but did not give pricing indications, the portfolio manager
said. The sub debt offer would be issued by JPMorgan Chase Bank
and would be rated AA- by S&P and Aa1 by Moody's.


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Moody's: South Africa outlook positive, was stable

(Reuters) - Moody's Investors Service revised on Tuesday the outlook on South Africa's foreign-currency debt ratings to positive from stable to reflect an improvement in the country's external credit indicators, despite widening current account deficits.

"South Africa's external debt metrics are now generally stronger than those of its rating peers in the 'Baa' rating range," said Moody's analyst Kristin Lindow.


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CORRECTED-Moody's, S&P may cut Flextronics on Solectron buy

(Reuters) - Moody's also said it may raise Solectron's ratings on the
acquisition.




Flextronics, the No. 1 U.S. contract electronics maker,
said on Monday it will buy Solectron for $3.6 billion in cash
and stock to cut costs and expand its product line. For
details, see [ID:nN04445158]


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JPMorgan Chase to update Aussie debt investors

(Reuters) - JPMorgan Chase Co. has recently established its first
Kangaroo bond programme, but has yet to issue from it.




Its senior credit is AA- by Standard & Poor's and Aa2 by
Moody's.



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Moody's, S&P may cut Flextronics on Selectron buy

(Reuters) - Flextronics, the No. 1 U.S. contract electronics maker,
said on Monday it will buy Solectron for $3.6 billion in cash
and stock to cut costs and expand its product line. For
details, see [ID:nN04445158]




"Flextronics' review for possible downgrade reflects the
potential for increased financial leverage to result if the
transaction closes as planned, Moody's said in a statement.
"Solectron's review for possible upgrade reflects the potential
increased scale and client diversity provided by the merger,"
the agency added.


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Moody's may cut Alltel's ratings on buyout

(Reuters) - "The review reflects Moody's expectations that leverage
will increase substantially, commensurate with the likely
capital structure and ownership by private equity investors,"
Moody's said in a statement.




"A multi-notch downgrade to a speculative rating is likely
by the conclusion of the review process," Moody's said.


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