HALISTER1: INDIA RATINGS: Bhushan Energy Cut; Mahendra Pumps Raised

INDIA RATINGS: Bhushan Energy Cut; Mahendra Pumps Raised

(Bloomberg) -- Here’s a roundup of Indian co. debt-rating changes.
  • To get this story sent to your inbox real-time, run NI INRATINGS , click on Display & Edit, then Set Alert Delivery
DOWNGRADES
  • Bhushan Energy
    • Long-term bank facilities cut to D from B at Care
    • Cites delays in debt servicing owing to stretched liquidity
  • Supreme Manor Wada Bhiwandi Infrastructure
    • LT rating cut to D from BB+ at Crisil
    • Cites delay in interest payment on term loan, mainly due to weak liquidity
UPGRADES
  • Mahendra Pumps
    • LT rating raised to BB- from B+ at Crisil
    • Cites expectation group’s business risk profile will improve over medium-term
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
MUTH IN (Muthoot Finance Ltd)
ARVND IN (Arvind Ltd)
9770841Z IN (Maxop Engineering Co Pvt Ltd)

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UUID: 7947283

HALISTER1: Baring Mulls Chinese Corporate Debt Purchase With Yield Premium

Baring Mulls Chinese Corporate Debt Purchase With Yield Premium

(Bloomberg) -- Baring Asset Management is looking to buy onshore Chinese corporate debt to take advantage of yield premiums built on default concerns.
  • Average investment-grade debt yields ~4%, which is “quite attractive” in local currency terms, Sean Chang, head of Asian debt investment at Baring Asset Management (Asia) Ltd, said in an interview
    • The fund manager likes “household” tech names, and major transport and utility companies, said Chang, who declined to give specifics. So far, default rate in China is relatively low, with regulators monitoring closely, he said
    • NOTE: 18 publicly-issued notes have defaulted in the onshore market so far this yr, compared with 7 for the whole of 2015. Yield for 5-yr onshore corporate debt rated AA traded around 3.4% this week, according to ChinaBond data
  • Baring, which is setting up accounts for China’s interbank bond market, is also keen to buy government bonds and the debt of Chinese policy and agency banks, Chang said
  • Chang expects yield curves to flatten in China, with the long end declining 50-80 bps. Yield at the short end will closely match other key rates such as repo and bank deposit rates
  • China’s policymakers are also likely to ease “to provide stimulus,” which means yields would decline, he said
  • Yuan may appreciate vs major currencies should its adoption into the SDR basket and Chinese markets inclusion in global equity and bond indexes drive inflows
    • Global investors have been underweight China because there is only partial access to mainland markets, Chang said
    • Yuan is “normalizing” this year and there haven’t been signs of excessive intervention. With SDR inclusion, PBOC will let markets decide on the currency level
  • Baring is part of Massachusetts Mutual Life Insurance Co
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Sean Chang (Baring Asset Management Ltd)

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UUID: 7947283

HALISTER1: Asia Currency Rally Defies Probability of Fed Rate Hike: Charts

Asia Currency Rally Defies Probability of Fed Rate Hike: Charts

(Bloomberg) -- The dollar is falling against a basket of Asian currencies even as futures markets see a higher probability of a December U.S. rate hike, suggesting investors will not be fazed by a 25 bps increase, Bloomberg strategist Mark Cranfield writes.
  • Click here for a chart showing performance of Bloomberg- JPMorgan Asia dollar index benchmarked against futures- market prediction
    • ADXY now at 107.76, up from the 105.88 on June 27; over the same period probability of a Dec. rate increase has risen to 47% from 8%
    • ADXY also advanced to this year’s high at 108.95 on April 19, from 104.80 on Feb. 29, while Dec. hike probability barely changed between 54% and 55% over the same period
  • Related story: USD/SGD more likely to fall than rise on 1% moves this year: UOB
  • NOTE: Mark Cranfield is an FX strategist who writes for Bloomberg. The observations he makes are his own.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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UUID: 7947283

HALISTER: Viacom Board Said to Back Settlement; Dauman to Step Down as CEO

Viacom Board Said to Back Settlement; Dauman to Step Down as CEO

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
VIAB US (Viacom Inc)
2341170Z US (National Amusements Inc)

People
Thomas Dooley (Viacom Inc)
Philippe Dauman (Viacom Inc)
Shari Redstone (Cinebridge Ventures Inc)
Sumner Redstone (National Amusements Inc)

Topics
Civil Procedure
Management Changes
Who's News - People

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UUID: 7947283

(2) *EMERSON TO BUY PENTAIR'S VALVES & CONTROLS BUSINESS FOR $3.15B

*EMERSON TO BUY PENTAIR'S VALVES & CONTROLS BUSINESS FOR $3.15B

Alerts: HALISTER, HALISTER1
Source: BN (Bloomberg News)

Tickers
EMR US (Emerson Electric Co)
PNR US (Pentair PLC)

People
David Farr (Emerson Electric Co)
Mark Polzin (Emerson Electric Co)
Michael Train (Emerson Electric Co)

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UUID: 7947283