Fitch

AstraZeneca plc (AZN) - Britta Holt at Fitch

Fitch Ratings London 11 : Fitch Ratings says today that major European pharmaceutical companies are seeking alliances and M&A opportunities in emerging markets such as India to offset the looming negative growth impact from unprecedented drug patent expiries, government and third party payer cost containment policies, and the challenging regulatory environment in Europe and the US. "Large European pharmaceutical companies, such as AstraZeneca which announced a license and supply agreement with the Indian branded generics company Torrent Pharmaceuticals Ltd today, are seeking to increase their presence in emerging markets," says Britta Holt, Director in Fitch's EMEA Corporate Healthcare team. "Such initiatives among large Pharma companies reflect a strategic attempt to position themselves in high growth regions, although this puts pressure on operating profitability.". Under AstraZeneca and Torrent's agreement, the Indian company will supply AstraZeneca ('AA '/Stable/'F1+') with a portfolio of generic medicines for which Torrent already has licenses in a range of emerging market countries. Branded generics are an important product area for big European pharma companies in emerging markets, as they are generally more affordable than innovative drugs and demand is therefore high. 

Torrent Pharmaceuticals Ltd. (500420) - Britta Holt at Fitch

Fitch Ratings London 11 : Fitch Ratings says today that major European pharmaceutical companies are seeking alliances and M&A opportunities in emerging markets such as India to offset the looming negative growth impact from unprecedented drug patent expiries, government and third party payer cost containment policies, and the challenging regulatory environment in Europe and the US. "Large European pharmaceutical companies, such as AstraZeneca which announced a license and supply agreement with the Indian branded generics company Torrent Pharmaceuticals Ltd today, are seeking to increase their presence in emerging markets," says Britta Holt, Director in Fitch's EMEA Corporate Healthcare team. 

Barclays plc (BARC) - Brian Coulton at Fitch

Barclays is looking at buying a large US retail bank as it tries to rebalance its business away from a booming investment banking franchise. According to people briefed on the plan, Antony Jenkins, the new head of Barclays' retail banking activities, is preparing a strategy paper that will go to the board in the next two to three months, the FT reports. Fitch Ratings has delivered a serious blow to the credibility of the Government's budget plans, warning that Britain risks a loss of investor confidence and erosion of its AAA rating unless it maps out clear austerity measures. Brian Coulton, the agency's head of sovereign ratings, said the UK has seen "the most rapid rise in the ratio of public debt to GDP of any AAA rated country" and is courting fate with its leisurely plan to halve the deficit by the middle of the decade, the Telegraph reports. 

Fonterra Co-operative Group Limited - Vicky Melbourne at Fitch

In addition, the company has started to retaining part of its surplus rather than paying it out to farmers. "The capital structure plans and retention policy will secure additional capital and improve financial flexibility, thereby ensuring that Fonterra is more comfortably placed within its rating level," said Vicky Melbourne, senior director in Fitch's corporate team. A further boost to Fonterra's rating was considered unlikely in view of Fonterra's heavy reliance on a single product and single country for its inputs. A negative rating action could be triggered by any structural changes that would affect the level of subordination, or debt funded acquisition to the point that leverage (total debt to operating profit before interest and taxes and depreciation and amortisation have been subtracted) moved to a multiple of around 2.5 on a sustained basis 

American International Group, Inc. (AIG) - William Artz at Fitch

Bank of America Corp and Goldman Sachs Group Inc are arranging the six year borrowing for International Lease Finance Corp with a proposed interest rate 5 percentage points more than the London interbank offered rate, with a 2 percent Libor floor, said the person, who declined to be identified because terms are private. Before seeking the $1.3 billion in bank debt, Los Angeles based ILFC had lost access to its usual financing sources following credit rating downgrades of AIG, which needed a $182.3 billion government rescue after losing bets on home loans. The insurer has secured agreements to raise more than $47 billion by selling assets including a life insurance division, a U. S auto insurer and an asset manager."Obviously it's a positive sign that they had so much demand for the issuance and they would look to increase it in size by another $550 million," said Bill Artz, an analyst who covers ILFC at Fitch Ratings. AIG was unable to sell the unit because there wasn't "sufficient" financing, he said today in a telephone interview from his office in Chicago. 

Fonterra Co-operative Group Limited - Vicky Melbourne at Fitch

In addition, the company has started to retaining part of its surplus rather than paying it out to farmers. "The capital structure plans and retention policy will secure additional capital and improve financial flexibility, thereby ensuring that Fonterra is more comfortably placed within its rating level," said Vicky Melbourne, senior director in Fitch's corporate team. A further boost to Fonterra's rating was considered unlikely in view of Fonterra's heavy reliance on a single product and single country for its inputs. A negative rating action could be triggered by any structural changes that would affect the level of subordination, or debt funded acquisition to the point that leverage (total debt to operating profit before interest and taxes and depreciation and amortisation have been subtracted) moved to a multiple of around 2.5 on a sustained basis 

Textron, Inc. (TXT) - William Artz at Fitch

Fitch Ratings Eric Ause, +1 312 606 2302, Chicago Craig Fraser, +1 212 908 0310, New York, (Textron Inc.) William Artz, +1 312 368 3178, Chicago (Textron Financial) Media Relations, New York: Cindy Stoller, +1 212 908 0526 cindy.stoller@fitchratings.com. 

Textron, Inc. (TXT) - Eric Ause at Fitch

Fitch Ratings Eric Ause, +1 312 606 2302, Chicago Craig Fraser, +1 212 908 0310, New York, (Textron Inc.) William Artz, +1 312 368 3178, Chicago (Textron Financial) Media Relations, New York: Cindy Stoller, +1 212 908 0526 cindy.stoller@fitchratings.com. 

AGL Energy Ltd (AGK) - Sajal Kishore at Fitch

Equity analysts said the higher REC prices should also strengthen AGL's hand in discussions with credit ratings agencies. But some in the market are wary of AGL's earnings from wind farm development fees, which it extracts through complex sale and lease back deals. Since the Friday announcement, REC prices are up 18 per cent to $42. However, traders in the illiquid market say they are awaiting clarity on the government's policy and Senate approval of the proposed RET legislation. A credit analyst at Fitch Ratings, Sajal Kishore, said the industry expected REC prices to lift above $50 in coming months, seen as the minimum price to underwrite wind developments.