Speaking of Coca-Cola Amatil, Fitch Ratings made a routine affirmation of the 'BBB+/Stable/F2' issuer default ratings assigned to the company and did the same with the 'BBB/Stable/F2' ratings assigned to Foster's Group Limited, last week.
Broadcast Australia Finance had its 'Baa2' rating affirmed by Moody's Investor Service on the completion of the acquisition of its parent, Macquarie Communications Infrastructure Group, by CPPIB Communications Pty Ltd. Moody's observed that the change of ownership was not expected to materially alter Broadcast Australia's operating performance or financial risk profile.
Moody's concluded its rating review of Transurban Finance Company and lowered the senior secured rating assigned to the company one notch to 'Baa1' and left the rating with a stable outlook. The rating was placed on review in March on concerns over a number of factors, including the group's weakening credit profile at its then rating level based on an expected slowdown in traffic growth.
Moody's said the rating could be downgraded if financial leverage increases over time. In addition, evidence of funding support for non-recourse investments, or further diversification into lower quality assets, which are heavily debt funded, could also result in a downgrade.
CSR Limited had its long-term issuer default rating from Fitch lowered one notch to 'BBB-' and left on Rating Watch Negative. Fitch recognises that CSR's operations are cyclical, that the current economic downturn will be of finite duration and that CSR is well-placed to benefit from an eventual economic recovery. However, Fitch does not expect any discernable improvement in earnings until FY2011, at the earliest, and considers CSR's leverage and cash flow metrics as inconsistent with a 'BBB' rating in the absence of an imminent recovery in earnings and cash flows.
The rating will remain on Rating Watch until the proposal to demerge the sugar business from the company and the resulting financial structure of each new entity is resolved.
Moody's concluded its review of Centro Shopping Centre CMBS 2006-1 and lowered the ratings on the Class C, D, and E notes to 'Baa2', 'Ba3' and 'B3' from 'Baa1', Ba2' and 'B1', respectively. The ratings on the Class A-1, A-2, A-3 and B notes were all affirmed.
This transaction is backed by 13 commercial mortgage loans granted to 12 borrowers in the Centro Group and the underlying collateral consists of 50 properties. The rating actions reflect the fact that the likelihood of refinancing for five loans (41 per cent of the total debt), which have soft maturity dates in December 2009, has diminished greatly because of the scarcity and cost of debt financing.
In addition to this refinancing risk, Moody's focused on value declines for properties in the pool. Given the general lack of demand currently evident for commercial real estate, should the underlying properties be sold to repay outstanding debt, it is likely that the prices obtained would be significantly less than the valuations recorded in December 2008.