bank and capital markets new issue review - ey · pdf filebank and capital markets new issue...

Contents Section 1 Market backdrop 2

Section 2 Bank loan market 3

Section 3 USD public bond market 6

Section 4 GBP public bond market 9

Section 6 EUR public bond market 11

Contacts

United Kingdom

Luke Reeve

Tel: +44 20 7951 6548 Email: [email protected]

Chris Lowe


Gary Davison


Europe

Olivier Catonnet Tel: +33 1 5561 0535 Email: [email protected]

Jonathan H.M. Harfield Tel: +420 731 627 155 Email: [email protected]

Britta Becker Tel: +49 40 36132 20781 Email: [email protected]

Asia

Gaurav Ahuja

Tel: +65 6309 8276 Email: [email protected]

US & Canada

K.C. Brechnitz Tel: +1 704 335 4211 Email: [email protected]

Tony Ianni


Australia

Sebastian Paphitis Tel: +61 2 9248 4773 Email: [email protected]

Jason Lowe


Section 7 Private Placement market 13

Section 8 Ratings Update 16

@EY_UKI

Section 9 Glossary 17

Section 5 ORB Retail Bond Market 10

EY Capital and Debt Advisory - New Issue Review 2

Market backdrop The first week of the European Central Bank’s (‘ECB’) Quantitative Easing (‘QE’) programme saw almost €10 billion of debt purchased by the ECB.

► The ECB announced on Thursday that in the first three days of their QE programme the bank had bought €9.8bn of public sector bonds with an average maturity of nine years. The bank remains confident of hitting its target of purchasing €60 billion of paper during March.

► The US Dollar continued its march, pushing the Euro further towards parity, since 1 January the Euro has fallen 15% against the US Dollar and fell to a low of US$1.0496 at close on Friday. The strength of the US Dollar has been driven by the impact of European QE and the strengthening US Economy, this has seen the US Federal Reserve preparing for its first interest-rate increase in nearly a decade.

► Sterling also struggled against the US Dollar failing to a five year low and trading as low as US$1.4707. Sterling has fallen c. 6% against the US Dollar since 1 January and faces further pressure in the coming months as the markets assess the pending outcome of the upcoming May General Election.

► Bank of England Governor Mark Carney warned that the UK may take longer than expected to return to its 2% inflationary target if the global economy continues to experience a persistent spell of weak price growth. Mr Carney also suggested that should low inflation continue, the Bank of England would look to address this by cutting interest rates as opposed to an increased QE programme.

► European equities markets rose in reaction to both the ECB’s QE programme and the anticipation of increasing interest rates in the US. The Xetra Dax 30 in Frankfurt rose 0.9% to 12,001.98 breaking the 12,000 point for the first time whilst the FTSE 100 is trading 0.5% up at 6776.04.

Section 1: Market backdrop

Tenor 3yr 5yr 7yr 10yr 30yr

UK swap rate 1.16 1.44 1.62 1.78 2.09

Gilt rate 0.90 1.29 1.31 1.70 2.49

Tenor 3yr 5yr 7yr 10yr 30yr

US swap rate 1.30 1.74 1.99 2.21 2.34

UST rate 1.07 1.58 1.90 2.10 2.67

Source: Bloomberg

Source: Bloomberg Source: Bloomberg

Source: Bloomberg

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10-year Benchmark yields

10yr UST 10yr Gilt 10yr Bund

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2015 2017 2019 2021 2023 2025

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Current forward 3m UK LIBOR

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7yr 10yr

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Weekly change in UK SWAP

Bank loan market


Section 2: EUR/GBP bank loan market

Source: Loan Connector Source: Loan Connector

EUR / GBP completed transactions greater than US$250m

Issue date

Issuer Tranche rating (M, S&P)

Form Ccy Amount Maturity Margin (+bps)

Sector Ctry Leads

15-Mar SIG Combibloc B1, NR RCF EUR 300 2021 - Consumer Products SW Various

15-Mar SIG Combibloc B1, B+ TL EUR 1050 2022 E+425 Consumer Products SW Various

12-Mar Serco Group NR, NR RCF GBP 450 2019 E+200 Business Services UK BAML, BAR, JPM

12-Mar Serco Group NR, NR RCF GBP 30 2016 E+200 Business Services UK BAML, BAR, JPM

11-Mar Foncia NR, NR TL EUR 95 2019 E+350 Real Estate FR CA, GS, NAT

► Genesee & Wyoming, the US railroad operator finally closed on Euro, GBP and USD loans to partially support its acquisition of British railroad operator Freightliner Group Ltd. The deal was originally announced in February 2015 and funding is now in place comprising US $2,050 million split between term and RCF, £350 million of Sterling facilities split between term and RCF and a €75 million RCF. All tranches pay L+200bps apart from the USD RCF which attract L+175bps.

► Ineos, the Swiss chemical company, has reduced pricing by 25bps on its €1.4 billion loan. The pricing on its 7-year TLB reduced to 325bps over LIBOR/Euribor. This follows a trend in the European leveraged market where pricing has been tightening over recent weeks compared to a widening over the latter half of 2014. The proceeds of the deal will be used to paydown the US $500 million senior secured notes and €500 million of floating rate senior secured notes, both due in 2019.

► Fortune Oil, the Chinese focussed oil and gas company, completed on a US $360 million loan split over two tranches. A six month term loan to fund the cash consideration and a 364-day revolving facility to refinance an existing facility. Both tranches pay L+200bps.

► Hanson Building, the construction materials provider, raised a total of US $1,045 million in the loan market, with proceeds being used to the fund the buyout by Lone Star Funds that was announced in December 2014. The funds were split between two tranches of term loan of US $635 million paying L+550bps and US $260 million paying L+950bps. These tranches have tenors of 7- and 8-years. A revolving facility of US $150 million was included attracting a margin of L+525bps.

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European pricing grid - multiyear drawn

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Western Europe Loan Volumes

Lev - Vol. ($Bils.) IG - Vol. ($Bils.)

Lev - No. of Deals IG - No. of Deals

Bank loan market


EUR/GBP completed transactions greater than US$250m (cont.)

Issue date



Sector Ctry Leads

13-Mar C&J Energy Ba3, NR TL USD 510 2020 L+550 Oil & Gas US Various



11-Mar Genesee & Wyoming Ba2, BBB- RCF GBP 200 2020 L+200 Transport US Various

11-Mar Genesee & Wyoming Ba2, BBB- RCF EUR 75 2020 L+200 Transport US Various

11-Mar Genesee & Wyoming NR, BBB- TL GBP 150 2020 L+200 Transport US Various

9-Mar Ista Intl NR, NR TL EUR 1,300 2020 E+325 Construction DE Various

Section 2: EUR/GBP bank loan market

Bank loan market


Section 2: USD Bank loan market

USD completed transactions greater than US$250m

Issue date



Sector Ctry Leads


15-Mar SIG Combibloc B1, B+ TL USD 1,225 2022 L+425 Consumer Products SW Various

13-Mar Afren Plc NR, NR TL USD 300 2019 L+440 Oil & Gas UK Various



13-Mar China Hongqiao NR, NR TL USD 300 2018 L+350 Mining & Metals CN Various

13-Mar China Hongqiao NR, NR TL USD 300 2018 L+390 Mining & Metals CN Various

13-Mar Community Health Systems

Ba2, BB TL USD 1,700 2018 L+325 Life Sciences US CS

13-Mar Fortescue Metals NR, NR TL USD 4,890 2022 L+450 Mining & Metals AU CS

12-Mar Wyndham Worldwide NR, BBB- RCF USD 1,500 2020 L+130 Hospitality & Leisure US BAML, JPM

11-Mar Genesee & Wyoming Ba2, BBB- RCF USD 250 2020 L+175 Transport US Various

11-Mar Genesee & Wyoming Ba2, BBB- TL USD 1,800 2020 L+200 Transport US Various

11-Mar Ineos NR, NR TL USD 1,530 2022 E+350 Chemicals UK Various

10-Mar Endeavour Mining NR, NR RCF USD 350 2020 L+575 Mining & Metals CA Various

10-Mar Greenland Investment Group

NR, NR TL USD 330 2018 L+220 Real Estate HK DB

9-Mar Ajinomoto Co NR, NR TL USD 378 2025 - Consumer Products JP BTMU, MIZ

9-Mar Fortune Oil NR, NR TL USD 160 2016 L+200 Oil & Gas HK -

9-Mar Fortune Oil NR, NR TL USD 200 2015 L+200 Oil & Gas HK -

9-Mar Hanson Building NR, NR RCF USD 150 - L+525 Construction US BAR, Citi, CS

9-Mar Hanson Building B1, NR TL USD 635 2022 L+550 Construction US BAR, Citi, CS

9-Mar Hanson Building Caa1, NR TL USD 260 2023 L+950 Construction US BAR, Citi, CS

9-Mar Heliosity Consulting NR, NR RCF USD 80 2018 L+230 Consumer Products SG -

9-Mar Heliosity Consulting NR, NR TL USD 170 2022 L+350 Consumer Products SG -

9-Mar Heliosity Consulting NR, NR TL USD 850 - L+300 Consumer Products SG -

USD public bond market


► M&A activity continued to provide momentum to bond issuance within the US with investment grade activity being led by Zimmer holdings (Baa3, NR, NR), the medical device developer and manufacturer based in Indiana. The company issued across the curve via seven tranches for US$7.65 billion to assist with the acquisition of fellow medical device maker Biomet.

► The Zimmer issuance was understood to be over two times covered and priced within initial expectations, however this could be noted as soft compared to the over four times achieved from last week’s issuance from Actavis (Baa3, BBB-, BBB-). Fatigue in the market was not unexpected, with a total of US$ 92 billion of investment grade issuance hitting the market in the first 11 days of March alone.

► Continuing on the above theme, QVC the broadcaster and media retailer was understood to have pulled their US$250 million tap this week, preferring to allow excess supply to dissipate. However, by and large the bond market continues to offer attractive cost of capital, with ease of execution. Sub-prime issuance this week was led by Shea Homes, the US based construction company and utilities company Crestwood Mainstream.

► .

Domestic

Section 3: USD public bond market

Source: Reuters Source: Reuters

Issue date

Issuer Tranche rating (M,S&P,F)

Form Amount (US$m)

Coupon Maturity Spread (T+bps)

Sector Ctry Leads

12-Mar CenturyLink Ba2, NR, BB+ SN 500 5.625% 2025 +353 Telecommunications US -

12-Mar EOG Resources A3, A-, NR SN 500 3.150% 2025 +105 Oil & Gas US Various

12-Mar EOG Resources A3, A-, NR SN 500 3.900% 2035 +125 Oil & Gas US Various

12-Mar Helmerich & Payne A3, BBB+, NR SN 500 4.650% 2025 +263 Oil & Gas US GS, HSBC, Wells

12-Mar JM Smucker Baa2, NR, NR SN 500 1.750% 2018 +75 Consumer Products US JPM, BAML

12-Mar JM Smucker NR, NR, NR SN 400 3.000% 2022 +115 Consumer Products US JPM, BAML

12-Mar JM Smucker NR, NR, NR SN 1,000 3.500% 2025 +140 Consumer Products US JPM, BAML

12-Mar JM Smucker NR, NR, NR SN 650 4.250% 2035 +160 Consumer Products US JPM, BAML

11-Mar Cigna Baa1, A, BBB+ SN 900 3.250% 2025 +115 Life Sciences US Various

11-Mar Froedtert Hosptial NR, NR, AA- SSN 100 4.686% 2045 +200 Life Sciences US MS

11-Mar Omega Healthcare Ba1, BBB-, NR SN 700 4.500% 2027 +255 Real Estate US Various

11-Mar Shea Homes B2, NR, NR SN 375 5.875% 2023 +389 Construction US JPM

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Monthy US$ bond volumes

Domestic volume (US$) Cross-border volume (US$)

Cross-border number issued Domestic number issued

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USD secondary public bond spread 10-year

Avg. AA USD 10yr spreads Avg. A USD 10yr spreads

Avg. BBB USD 10yr spreads

Issue date


Form

Amount (US$m)


Sector Ctry Leads

11-Mar Shea Homes B2, NR, NR SN 375 6.125% 2025 +402 Construction US JPM

11-Mar Surgical Care Affiliates Caa1, NR, NR SN 250 6.000% 2023 +398 Life Sciences US Various

10-Mar American University A1, NR, NR SN 129 4.321% 2045 +160 Education US JPM, Wells

10-Mar Boardwalk Pipeline Baa3, BB+, BBB- SN 600 4.950% 2024 +285 Power & Utilities US BAR, JPM

10-Mar Essex Portfolio Baa2, BBB, BBB+ SN 500 3.500% 2025 +140 Real Estate US Various

10-Mar Evolution Escrow B3, BB-, NR SSN 600 7.500% 2022 +556 Consumer Products US Various

10-Mar Sempra Energy Baa1, NR, BBB+ SN 500 2.400% 2020 +80 Power & Utilities US Various

10-Mar TC Pipelines Baa2, BBB-, NR SN 350 4.375% 2025 +230 Power & Utilities US SunTrust, RBS

10-Mar Valero Energy Baa2, BBB, BBB SN 600 3.650% 2025 +155 Oil & Gas US Various

10-Mar Valero Energy Baa2, BBB, BBB SN 650 4.900% 2045 +220 Oil & Gas US Various

10-Mar Zimmer Baa3, NR, NR SN 500 1.450% 2017 +80 Life Sciences US Various

10-Mar Zimmer Baa3, BBB, NR SN 1,150 2.000% 2018 +95 Life Sciences US Various

10-Mar Zimmer Baa3, A-, NR SN 1,500 2.700% 2020 +110 Life Sciences US Various

10-Mar Zimmer Baa3, A-, NR SN 750 3.150% 2022 +125 Life Sciences US Various


10-Mar Zimmer Baa3, A-, NR SN 500 4.250% 2035 +160 Life Sciences US Various


9-Mar BorgWarner Baa1, BBB+, BBB+ SN 500 3.375% 2025 +120 Transport US DB, BAML, Wells

9-Mar BorgWarner Baa1, BBB+, BBB+ SN 500 4.375% 2045 +160 Transport US DB, BAML, Wells

9-Mar Columbia Ppty Trust Baa2, BBB-, NR SN 350 4.150% 2025 +197 Real Estate US Various

9-Mar Crestwood Midstream B1, BB, NR SN 700 6.250% 2023 +418 Power & Utilities US Various

9-Mar Duke Power Aa2, A, A+ SN 500 3.750% 2045 +100 Power & Utilities US Various

9-Mar EPR Properties Baa2, BBB-, BBB- SN 300 4.500% 2025 +235 Real Estate US BAR, Citi, JPM

9-Mar Healthsouth Ba3, BB-, NR SN 300 5.125% 2023 - Life Sciences US Various

9-Mar Masonite International B2, BB-, NR SN 475 5.625% 2023 +355 Construction US Various

9-Mar Potomac Electric Power A2, A, A- SSN 200 4.150% 2043 - Power & Utilities US BNY, MS, RBS

9-Mar San Diego Gas & Electric Aa2, A+, AA- SN 140 Float 2017 - Power & Utilities US Various

9-Mar San Diego Gas & Electric Aa2, A+, AA- SSN 250 1.914% 2022 +80 Power & Utilities US Various




Domestic (Cont.)




Issue date


Form

Amount (US$m)


Sector Ctry Leads

9-Mar Spectra Energy Baa2, BBB, BBB SN 500 3.500% 2025 +135 Power & Utilities US Various

9-Mar Spectra Energy Baa2, BBB, BBB SN 500 4.500% 2045 +175 Power & Utilities US Various

Domestic (Cont.)

Issue date


Form

Amount (US$m)


Sector Ctry Leads

12-Mar BP A2, NR, NR SN 1,000 3.062% 2022 +117 Oil & Gas UK Various

12-Mar BP A2, NR, NR SN 1,000 3.506% 2025 +142 Oil & Gas UK Various

12-Mar Reliance Intermediate B1, BB-, NR SSN 375 6.500% 2023 +453 Construction CA RBC, BAR

12-Mar State Oil Co of Azar NR, BB+, NR SN 750 6.950% 2030 +484 Oil & Gas AZ JPM, DB

11-Mar Air Canada NR, BB-, BB SSN 182 5.000% 2020 +340 Transport CA Various

11-Mar Air Canada NR, BBB, BBB- SN 182 3.875% 2023 +227 Transport CA Various

11-Mar Air Canada NR, A, A SSN 667 3.600% 2027 +149 Transport CA Various

11-Mar GFL Environmental B3, B, NR SN 250 7.875% 2020 +652 Power & Utilities CA BMO, CS

10-Mar Millicom Intl Ba2, BB+, NR SN 500 6.000% 2025 +387 Telecommunications LX Various

Cross border

GBP public bond market


Section 4: GBP public bond market


Domestic

Cross-border

► No significant issues this week.

Issue date


Form Amount (GBPm)

Coupon Maturity Spread (G+bps)

Sector Ctry Leads

No significant issuance in this week

Issue date


Form Amount (GBPm)

Coupon Maturity Spread (G+bps)

Sector Ctry Leads

No significant issuance in this week

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GBP secondary public bond spread 10-year

Avg. AA GBP 10yr spreads Avg. A GBP 10yr spreads

Avg. BBB GBP 10yr spreads

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Monthy GBP bond volumes

Volume (GBP) Number issued

ORB retail bond market


In the market

Recent Issues

Date Issuer Ratings (M,S&P,F) Form Amount (GBPm)

Coupon Maturity Sector Country

Oct-14 Eros International NR, NR, NR SN 50 6.50% 2021 Media & Entertainment UK

Oct-14 A2D Funding NR, NR, NR SSN 150 4.50% 2026 Real Estate UK

Aug-14 Burford Capital NR, NR, NR SN 90 6.50% 2022 Finance UK

Jul-14 Golden Lane Charity NR, NR, NR SN 11 4.47% 2021 Real Estate UK

Jun-14 Ladbrokes NR, BB, BB SN 100 5.13% 2022 Leisure UK

Jan-14 Paragon NR, NR, NR SN 125 6.13% 2022 Finance UK

Dec-13 Premier Oil NR, NR, NR SN 150 5.00% 2020 Oil & Gas UK

Oct-13 A2Dominion NR, NR, AA- SN 150 4.75% 2022 Real Estate UK

Jul-13 Bruntwood NR, NR, NR SSN 50 6.00% 2020 Real Estate UK

Jun-13 Helical Bar NR, NR, NR SN 80 6.00% 2020 Real Estate UK

May-13 International Personal Finance

NR, NR, BB+ SN 70 6.13% 2020 Finance UK

Mar-13 Provident NR, NR, BBB SN 65 6.00% 2021 Finance UK

Mar-13 Paragon NR, NR, NR SN 60 6.00% 2020 Finance UK

Feb-13 EnQuest NR, NR, NR SN 145 5.50% 2022 Oil & Gas UK

Dec-12 Alpha Plus NR, NR, NR SSN 49 5.75% 2019 Education UK

Dec-12 UNITE NR, NR, NR SN 90 6.13% 2020 Real Estate UK

Date Issuer Ratings (M,S&P,F) Form Amount (GBPm)

Coupon Maturity Sector Country

Mar-15 Intermediate Capital Group

NR, BBB-, BBB- SN - 5.00% 2023 Finance UK

Section 5: ORB retail bond market

EUR public bond market


► BAT International Finance, the global tobacco company (A3, A-, NR) led the investment grade issuance with the raising of €3.0 billion across multiple tranches. The stand-out issuance was the 30-yr, €600 million issuance at 2.00%, representing a significant success for the growing long-term corporate bond issuance market for borrowers. In addition, the 30-year tranche was understood to be the most oversubscribed of the tranches, at near 3 times over.

► The BAT issuance continues to show the demand for yield, as investors continue to be impacted by the plummeting yields available on shorter term debt, the negative interest rate yields being offered by sovereign nations and the ever present excess liquidity within the marketplace. Notably, on the latter point, the European Central Bank’s quantitative easing programme, a bond buying scheme began on Monday and is likely to continue to add fuel to fire.

► With the sub-investment grade market, issuance was led by Merlin Entertainments Plc (Ba3, BB, NR). Merlin, the largest entertainment company in Europe that was successfully floated on the UK stock market in December 2013 by Blackstone and CVC achieved it’s debut high-yield issuance raising €500 million senior 7-year notes at a spread of 280bps over 2.00% 2022 Bund. The yield achieved is understood to be the lowest non-investment grade pricing achieved in Euros and continues to show the buoyance and strengths of the issuers market.

Section 6: EUR public bond market


Domestic Issue date


Form Amount (EURm)

Coupon Maturity Spread

(MS+bps) Sector Ctry Leads

12-Mar Brescia Verona Vicenza NR, NR, BB+ SSN 600 2.375% 2020 MS+211 Transport IT Banca IMI, MS, Unicredit

12-Mar Play Holdings 2 NR, NR, NR SSN 125 5.250% 2019 +386 Telecommunications PL JPM

12-Mar Sappi Papier Ba2, BB, NR SSN 450 3.375% 2022 +334 Materials AS Various

12-Mar Vattenfall Baa2, NR, NR SUB 1,000 3.000% 2077 MS+226 Power & Utilities SE -

10-Mar Enagas Financiaciones NR, BBB, A- SN 400 1.000% 2023 MS+53 Power & Utilities ES Various

10-Mar Faurecia B1, NR, BB- SN 500 3.125% 2022 +316 Automotive FR Various

10-Mar Metro AG NR, NR, NR SN 600 1.500% 2025 MS+85 Consumer Products DE Various

10-Mar Neste Oil NR, NR, NR SN 500 2.125% 2022 MS+178 Oil & Gas FI Various

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EUR public bond market


Section 6: EUR public bond market

Cross-border

Issue date


Form Amount (EURm)

Coupon Maturity Spread

(MS+bps) Sector Ctry Leads

13-Mar Coca-Cola A3, BBB+, BBB+ SN 500 1.875% 2030 MS + 105 Consumer Goods US Various

13-Mar AR Packaging NR, NR, NR SSN 115 5.82% 2017 - Consumer Goods SE Pareto

12-Mar Discovery Communications

Baa2, NR, BBB SN 600 1.900% 2027 MS +120 Media & Entertainment US CS, JPM

11-Mar Merlin Entertainments

Ba2, BB, NR SN 500 2.750% 2022 +280 Media & Entertainment UK BAR, RBS, HSBC

10-Mar BAT International A3, NR, NR SN 800 0.375% 2019 MS+25 Consumer Products UK Various




10-Mar Flowserve NR, BBB, NR SN 500 1.250% 2022 MS+92 Industrials US BAML, JPM

9-Mar Kinder Morgan Baa3, BBB-, BBB- SN 750 1.500% 2022 MS+108 Power & Utilities US Various

9-Mar Kinder Morgan Baa3, BBB-, BBB- SN 500 2.250% 2027 MS+143 Power & Utilities US Various

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2011 2012 2013 2014 2015

Private Placement market


► SOL Group (NAIC-2), the gas producer, has tapped the market for €40 million of 12-year senior unsecured notes. The deals was priced at a margin of 1.96%. This follows a previous issuance back in May 2013

► TETRA Technologies (NAIC-2), the diversified oil and gas services company is in the market for US $50 million of secured notes. This is expected to be used to retire the US $90 million of notes that are due to mature at the end of April

► Electrocomponents (NAIC-2), the British based electrical components manufacturer, is in the market for US $85 million of senior notes, split between maturities of 5- and 7- years. Price talk is believed to be in the region of T+140 bps. The business previously tapped the market back in January 2010 for US $100 million of senior notes

► Rolls Royce & Partners Finance Limited (NAIC-1) is currently in price talks for a 10 year note of US $250 million. Expectations are in the region of T+100-110bps and will be split between floating and fixed charges

► WABCO Holdings Inc, which is viewed as a borderline NAIC-1/NAIC-2, is launching a US $200 million senior note split into 7-, 10- and 12 year bullets. Price talk is in the region of T+125bps and is expected to close within the next couple of weeks. WABCO is a provider of various systems for heavy duty commercial vehicles

Section 7: US Private Placement market

Source: Private Placement Monitor Source: Bloomberg

Source: Private Placement Monitor Source: Private Placement Monitor

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US Treasury benchmark yields

5yr UST 7yr UST 10yr UST 30yr UST

Date Issuer Ratings Form Amount (US$m)


Sector Ctry

Mar-15 Eli Lilly NAIC-1 - 17 - 10yr - Manufacturing US

Mar-15 CVS CTL NAIC-2 - 6 4.16% 25f/15avg - Agriculture US

Mar-15 Patterson NAIC-1 SN 250 3.48% 10yr +135 Life Sciences US

Feb-15 Prairie Wind Transmission

NAIC-1 SSN 85 3.68% 30f/16avg +115 Power & Utilities

US

Feb-15 Wal-Mart - CTL 8 - 15f/8.5avg +125/Icur Consumer Products

US




Date Issuer Ratings Form Amount (US$m)


Sector Ctry

Mar-15 UNS Electric NAIC-1 SN 130 12yr, 30yr - Power & Utilities

US

Mar-15 TETRA Technologies - SSN 50 - - - Technology US

Mar-15 ITC Midwest NAIC-1 (A1/A)

- 200 - 30yr 40yr

+120 +135

Power & Utilities

US

Date Issuer Ratings Form Amount Coupon Maturity Spread (T+bps)

Sector Ctry

Mar-15 SA Power NAIC-1 SSN 200 - 10yr, 12yr,

15yr -

Power & Utilities

AU

Mar-15 AMA SpA - - 30 - 5yr, 7yr - Agriculture IT

Mar-15 Rolls-Royce NAIC-1 SSN 250 - 10yr +100-110 Automotive UK

Mar-15 Electrocomponents NAIC-2 (BBB)

- 85 - 5-7yr +140 Technology UK

Mar-15 WABCO - - 200 - - +125 Automotive BE

Mar-15 SA Power Networks NAIC-1 - 200 - 10yr, 12yr,

15yr -

Power & Utilities

AUS

Mar-15 Sikuki Nuuk Harbour NAIC-1 SN EUR 60 - 20yr - Transport GL

Mar-15 CBH Group - - - - - - Logistics AUS

Domestic: In the market

Domestic: Issued

Cross Border: In the market




Cross Border: Issued

Date Issuer Ratings Form Amount Coupon Maturity Spread (T+bps)

Sector Ctry

Mar-15 Aquasure NAIC-2 SSN 310 4.48% 10yr +170 Power & Utilities

AU

Mar-15 SOL Group NAIC-2 SN EUR 40 1.96% - - Power & Utilities

IT

Mar-15 NSW Ports NAIC-2 SSN 300 - 10yr, 12yr,

15yr +100

Power & Utilities

AU

Mar-15 Hallett 2 Wind Farm NAIC-2 12y/10avg +100 Power & Utilities

AU

Mar-15 Kingspan NAIC-2 - EUR 127.5 - 6yr, 8yr,

10yr - Construction IE

Mar-15 Ymagis SA (*) - - EUR 17.5 EUR 19

4% 4.25%

4yr 5yr

- Media & Entertainment

FR

*Deal was issued in the European Private Placement Market

Ratings Update

New and Notable from Ratings Agencies


The above list highlights ratings developments that we believe are interesting or noteworthy. This list is not exhaustive.

Section 8: Ratings Update

► Mabel Topco Ltd. (Parent of U.K. based restaurant chain Wagamama) gets S&P B- rating with Stable Outlook

► E.ON Generacion (Spanish Power Utility) gets Fitch BB- and S&P B+ ratings with Stable Outlook ► DS Smith PLC (U.K. based paper packaging producer) gets S&P BBB- rating with Stable Outlook ► GT NEPS Ltd. (Limited-purpose entity created to design, build and operate 12 primary schools in

the UK) gets S&P A- rating with Stable Outlook ► SGS S.A. (Swiss global leader in the testing, inspection and certification market) gets Moody’s A3

rating with Stable Outlook

► Deutsche Annington (German residential property company) upgraded to BBB+ / Stable Outlook from BBB by S&P

► 7 Qatari Banks upgraded by Fitch due to changes in support assessments, following Qatar upgrade to ‘AA’

► Lower oil could tilt corporate issuance volume for 2015 (Fitch); US corp issuances outpace Europe as growth diverges (Fitch)

► Spain debt restructuring law formalises market practices (Fitch)

► Ukrainian companies face more defaults with new FX controls, liquidity strain and operational challenges (Fitch)

► Big data will be increasingly important to insurers' profitability, competitiveness and - in the long term - credit ratings (Fitch)

► Extended US Refinery strike could tighten supply balances

► U.K. Building Societies report strong 2014 results

► European Investors Expect QE to Intensify Search for Yield

Key

New ratings

Positive rating actions

Negative rating actions

Trends in financial markets and industry sectors

► Eco-Bat Technologies (U.K. based lead recycler) rating downgraded to CCC+/ Stable Outlook from B by S&P

► Mediocredito Trentino Alto Adige S.p.A. (Italian Bank) rating downgraded to BB-/ Stable Outlook from BBB+ by Fitch

► Brookfield Asset Management Inc. (U.S. asset manager) rating downgraded to BBB-/ Stable Outlook from BBB by Fitch

9 March – 15 March 2015

Asset-backed securitization ABS Not rated NR

Commercial mortgage-backed securitization CMBS Other loan OTH

Deep discount bond DDB Revolving credit facility RCF

Energy savings performance contract ESPC Senior note SN

First mortgage bonds FMB Senior secured note SSN

London interbank offered rate LIBOR Subordinated note SUB

Medium-term note MTN Term loan TL

ABN Amro ABN Jefferies & Co. JEF

Bank of America Merrill Lynch BAML JP Morgan JPM

BBVA Securities BBVA KBC Capital Markets KBC

Bank of Tokyo Mitsubishi UFJ BOTM Landesbank Baden-Wuerttemberg LBBW

Banco Santander SA SANT Lloyds Capital Services Ltd LCS

Bank of New York BNY Lloyds Banking Group LBG

Bank of Egypt BoE Banca March MAR

Bank of Nova Scotia BNS Mega International Commercial Bank Co Ltd MICBC

Bank of the West BoW Mitsubishi UFJ Financial MIS

Barclays Bank BAR Mizuho Financial Group Inc MIZ

BayernLB BLB Morgan Stanley MS

BMO Capital Markets BMO Natixis NAT

BNP Paribas Group BNP Norddeutsche Landesbank GZ NLB

Capital One Bank COB Nomura NOM

Calyon CAL PNC Capital Markets PNC

CIBC World Markets CIBC Rabobank RAB

Citi Citi RBC Capital Markets RBC

Commonwealth Bank of Australia CBA Raiffeisen Bank International RBI

Commerzbank AG CZB RBS RBS

Crédit Agricole CA Société Générale SG

Credit Suisse CS Scotia Capital Inc SCA

Deutsche Bank DB Standard Bank Plc SB

DnB NORD DnB Standard Chartered Bank STA

European Investment Group EIG National Bank of Egypt STET

Fortis Securities Inc FOR SRM Robinson Humphrey SRH

Goldman Sachs & Co GS Sumitomo SUM

HSBC HSBC UBS UBS

Itau BBA IBBA UniCredit Group UNI

ING Groep NV ING U.S. Bancorp USB

Intesa Sanpaolo SA ISP Wells Fargo Wells

Incapital LLC INC WestLB WLB

Banca IMI IMI WestPac WP

Glossary Technical abbreviations

Financial institution abbreviations


Section 9: Glossary

EY | Assurance | Tax | Transactions | Advisory

Ernst & Young LLP

© Ernst & Young LLP. Published in the UK. All Rights Reserved.

The UK firm Ernst & Young LLP is a limited liability partnership registered in England and Wales with registered number OC300001 and is a member firm of Ernst & Young Global Limited.

Ernst & Young LLP, 1 More London Place, London, SE1 2AF.

Information in this publication is intended to provide only a general outline of the subjects covered. It should neither be regarded as comprehensive nor sufficient for making decisions, nor should it be used in place of professional advice. Ernst & Young LLP accepts no responsibility for any loss arising from any action taken or not taken by anyone using this material.

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