Wesfarmers has received a boost, with Moody's upgrading its issuer and senior unsecured long term
debt rating from Baa1 (positive) to A3 (stable).
To identify these companies, we look for stocks that have a minimum market capitalization of $ 1 billion with an A +
debt rating from at least one of the debt - rating agencies.
Not exact matches
Aside
from a slightly lower
debt rating than we typically like, the underlying fundamentals for Potash Corp. warrant its inclusion.
The European Central Bank on December 3 dropped one of its main policy
rates to negative 0.3 %
from negative 0.2 % and said it would extend its bond - buying program, under which it creates euros to purchase
debt, to at least March 2017.
Important factors that could cause actual results to differ materially
from those reflected in such forward - looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our business and execute our growth strategy, including the timing, execution, and profitability of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability to achieve certain cost reductions with respect to the B787 program; 4) margin pressures and the potential for additional forward losses on new and maturing programs; 5) our ability to accommodate, and the cost of accommodating, announced increases in the build
rates of certain aircraft; 6) the effect on aircraft demand and build
rates of changing customer preferences for business aircraft, including the effect of global economic conditions on the business aircraft market and expanding conflicts or political unrest in the Middle East or Asia; 7) customer cancellations or deferrals as a result of global economic uncertainty or otherwise; 8) the effect of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign currency exchange
rates; 9) the success and timely execution of key milestones such as the receipt of necessary regulatory approvals, including our ability to obtain in a timely fashion any required regulatory or other third party approvals for the consummation of our announced acquisition of Asco, and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing and our other customers; 11) our ability to enter into profitable supply arrangements with additional customers; 12) the ability of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the risk of nonpayment by such customers; 13) any adverse impact on Boeing's and Airbus» production of aircraft resulting
from cancellations, deferrals, or reduced orders by their customers or
from labor disputes, domestic or international hostilities, or acts of terrorism; 14) any adverse impact on the demand for air travel or our operations
from the outbreak of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover
from cyber-based or other security attacks, information technology failures, or other disruptions; 16) returns on pension plan assets and the impact of future discount
rate changes on pension obligations; 17) our ability to borrow additional funds or refinance
debt, including our ability to obtain the
debt to finance the purchase price for our announced acquisition of Asco on favorable terms or at all; 18) competition
from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 20) the effect of changes in tax law, such as the effect of The Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes to the interpretations of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect of such changes; 21) any reduction in our credit
ratings; 22) our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components; 23) our ability to recruit and retain a critical mass of highly - skilled employees and our relationships with the unions representing many of our employees; 24) spending by the U.S. and other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate for our additional capital needs or for payment of interest on, and principal of, our indebtedness; 26) our exposure under our revolving credit facility to higher interest payments should interest
rates increase substantially; 27) the effectiveness of any interest
rate hedging programs; 28) the effectiveness of our internal control over financial reporting; 29) the outcome or impact of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and other cost savings; 32) our ability to consummate our announced acquisition of Asco in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes to business relationships and other business disruptions for ourselves and Asco as a result of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the risks of doing business internationally, including fluctuations in foreign current exchange
rates, impositions of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government policies; and 35) our ability to complete the proposed accelerated stock repurchase plan, among other things.
Since the recession ended in mid-2009, the economy has been expanding at sub-par
rates as a string of problems
from higher gas prices to Europe's
debt crisis have acted as a drag on the U.S. economy.
This suggests a return to the normalized
rate of 5.5 %, which would result in Ontario's annual interest costs moving
from $ 12 billion to $ 13 billion and climbing to $ 17 billion once all
debt is refinanced.
Canadians ignored warnings
from policymakers about piling on
debt for years because low interest
rates were too enticing.
At the same time, the fact the ECB is likely to gradually raise interest
rates, it will mean that these peripheral nations could face higher
debt financing when borrowing money
from the markets.
But that pain today would arguably be less severe than if
rates go up years
from now, when households have piled on even more
debt.
South Africa also suffered a sovereign
debt rating downgrade
from Moody's last month as the economy comes under pressure
from energy shortages, unrest at platinum mines and a soaring budget deficit.
The record high levels of consumer
debt among Canadians has also raised a red flag
from Bank of Canada governor Mark Carney and others who have warned that interest
rates will rise at some point — raising the cost of borrowing.
While both plans would increase the
debt ceiling,
ratings agencies have said a short - term increase such as the one proposed by House Republicans may not be enough to protect the U.S.
from a
ratings downgrade.
China's credit agency Dagong lowered its U.S. sovereign credit
rating from A to A - on Thursday, even after the
debt ceiling had been lifted.
Earlier this week
rating agency Standard and Poor's changed its U.S. long - term
debt outlook to «stable»
from «negative,» despite the concrete prospect of more showdowns on fiscal policy.
For
ratings issued on a program, series or category / class of
debt, this announcement provides relevant 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.
Considering its strategic orientation of growing through acquisition, ACT has some latitude at the
rating for periodically elevated leverage, but we believe that negative
rating pressure would emerge if a transaction caused fully adjusted
debt to EBITDA to exceed 3.5 x with risky prospects for a return to below 3.0 x. Moreover, the
rating would be under pressure if increased competition caused weaker earnings, particularly
from merchandise and services, keeping
debt to EBITDA above 3x.
Elevated
debt levels
from the acquisition, after accounting for the recent C$ 345 million equity issue, contribute to estimated pro forma leverage of about 3.5 x, which is high for the
rating.
Data
from the Portuguese Finance Ministry showed that the country paid less than 300 million euros ($ 368.49 million) in interest on its sovereign
debt between 2016 and 2017 due to the increasingly optimistic views
from the
ratings agencies.
You can refinance expensive
debt and trim thousands
from your monthly budget by securing a long - term, low -
rate loan like the one you should've taken in the first place.
Threats
from debt -
rating agencies to strip the country of its sterling credit
rating and investors» lacklustre response to a bond auction in November are just two signs that this reality is beginning to sink in.
However, he says there's good reason to think Canada can manage the risks
from debt, which he says is a natural consequence of several factors, including the combination of a strong demand for housing and the prolonged period of low interest
rates maintained in recent years to stimulate the economy.
Given Osiris's strong five - year record of growth and profitability, Bowers was able to help make Miller's wishes come true: he structured a deal that raised $ 13 million
from a large local pension fund — the Pennsylvania Public School Employees Retirement System (see «What Pension Funds Want,» [Article link]-RRB--- by selling a package of subordinated
debt and convertible preferred stock, which included a fixed interest
rate and dividend yield.
Represents loss on early extinguishment of
debt and non-cash interest expense related to losses reclassified
from accumulated other comprehensive income (loss) into interest expense in connection with interest
rate swaps settled in May 2015.
Yet over the past ten years, the national
debt has grown
from $ 9.4 trillion to over $ 21 trillion - a growth
rate of 123 %!
The government beat this projection by nearly $ 1.6 billion — by taking $ 1 billion
from reserve, keeping spending levels $ 600 million less than projected, and through $ 335 million of savings
from lower than anticipated interest
rates on government
debt.
Moody's credit
rating agency changed Ontario's
debt rating in July to negative
from stable, citing concerns about the province's ability to eliminate the deficit as scheduled.
While consumer cards are governed by the CARD Act, which prevents issuers
from increasing interest
rates on existing
debt unless an accountholder is at least 60 days delinquent, issuers can arbitrarily jack up business card
rates whenever the mood strikes them.
Calculated by an inconceivably complicated formula, a credit score will draw
from an individual's level of
debt,
rate of successful payments made and general cash flow.
With a «real» job, our combined income could go up anywhere
from $ 20 - 40k per year This would allow us to pay
debt and save at 2 - 3 times our current
rate.
The first and more important is that interest
rates are expected to rise
from their current low levels, making any given amount of
debt more costly to finance.
Actual results could differ materially
from those expressed in or implied by the forward - looking statements contained in this release because of a variety of factors, including conditions to, or changes in the timing of, proposed real estate and other transactions, prevailing interest
rates and non-recurring charges, store closings, competitive pressures
from specialty stores, general merchandise stores, off - price and discount stores, manufacturers» outlets, the Internet, mail - order catalogs and television shopping and general consumer spending levels, including the impact of the availability and level of consumer
debt, the effect of weather and other factors identified in documents filed by the company with the Securities and Exchange Commission.
«Since June 2010, Gross has been reducing the $ 245 billion fund's vulnerability to interest -
rate swings and increasing its reliance on credit quality by shifting
from Treasuries to corporate and non-U.S. sovereign
debt, a strategy that backfired last month,» according to Bloomberg.
People who carry a balance on their credit cards typically pay
rates of 17 percent or higher, according to Nick Clements, author of «Secrets
From An Ex-Banker: How To Crush Credit Card
Debt» and co-founder of price comparison website MagnifyMoney.
The potential counter weights that could cap the 10 - year yield would be a negative stock market reaction that drives investors to bonds; lower interest
rates outside the U.S. that make the U.S.
debt relatively more attractive, and good demand for longer - dated securities
from insurers and others.
Ryan Avent pointed out that even if we enacted Trump's massive tax cuts and spending increaes, adding $ 34 trillion in new
debt over the next two decades, our ratio of
debt to GDP two decades
from now would still be 30 percentage points less than Japan's government
debt ratio is right now... and the market is still buying their negative interest
rate long term
debt...
The
ratings agency Moody's maintained the US's top - notch «Aaa» credit
rating Thursday, saying, «The diversity, dynamism, and competitiveness of the US economy, along with the US dollar's status as the preeminent international reserve currency and very large size and depth of the US Treasury market, offset rising fiscal pressures stemming
from aging - related entitlement spending, higher
debt - service payments, and recent policy actions that will likely reduce future revenues and increase expenditures.»
Emerging - market companies have piled on
debt in recent years, allured by low interest
rates from yield - starved investors.
We suspect that much of the projected growth benefit
from corporate tax reform comes
from enacting expensing of equipment, which reduces the entity - level effective tax
rate to zero on equity - financed investment and makes it negative if financed in part with
debt.
Hope for positive effects
from interest
rate cuts, versus continued deterioration of corporate earnings and employment, as well as sudden concern over the
debt problems in Argentina (which we noted in early May).
When growth is most needed, when a country is suffering
from excessively high levels of
debt, it is hard to find many cases in which the aggressive implementation of reforms led to growth
rates fast enough for the debtor to grow its way out of
debt.
Combining this with poor sales growth results in a dismal outlook for earnings 3) the pressure on earnings will continue to hurt capital spending, which is usually just a magnified image of earnings, 4) the same factors will continue to raise default
rates, causing earnings problems and
debt downgrades among banks and financial companies, 5) earnings shortfalls will also lead to continued job cutbacks, with the unemployment
rate rising to at least 5.5 % (indeed, once the unemployment
rate has advanced by 0.5 %
from its lows, it has never reversed until rising by least 1.5 % off those lows).
How will your company finance growth derived
from lower tax
rates — through equity,
debt or free cash generation?
In one paper he co-wrote in the spring of 2002, just months after he joined Goldman Sachs to lead its effort to win investment banking business
from European governments, Mr. Draghi argued that governments might use financial derivatives like interest
rate swaps «to stabilize tax revenue and avoid the sudden accumulation of
debt.»
Even if student loan
debt itself doesn't prevent millennials
from owning real estate, rising delinquency
rates on the loans can.
The spike doesn't add up when you consider that 30 - year mortgage
rates fell
from December 2016 to December 2017, while the percentage of mortgage loans with
debt - to - income ratios over 45 % rose
from 7 % to 20 % over the same time.
Without a massive transfer of wealth
from the state sector to the household sector it will be impossible, I would argue, for GDP growth
rates of anything above 3 - 4 % — and perhaps even less — to occur without a further unsustainable increase in
debt, whether that increase occurs inside or outside the formal banking system and whether or not discipline has been imposed on borrowers.
The fragility of Italy's application — high levels of
debt, runaway deficits — was underscored the next year when Italy was expelled
from the exchange
rate mechanism and came close to running out of money.
But it will be many, many years
from now, and if we end up with Volcker style Fed fund
rates before then — as you seem to believe — it won't be because the Treasury was trying to surreptitiously inflate away the national
debt.
One red flag for lenders is that the volume of energy
debt rated CCC or below — the weakest
ratings among junk bond issuers — has more than doubled to $ 62 billion
from a year ago, Fitch said in a June 12 report.