Halister News

(To subscribe to EU Credit Daily, click here and set alert via ‘"Display & Edit’’) By Simon Ballard (Bloomberg) -- Global credit mkts look set to maintain the firm tone today, with equities extending gains overnight in Asia. Notwithstanding the uptick in yday’s U.S. ISM data, the global macro backdrop will likely continue to present headwinds to risk appetite in the coming days and weeks, Bloomberg strategist Simon Ballard writes.

• China credit-rating outlook cut to negative by Moody’s; highlights magnitude of sovereign’s debt burden and questions government’s ability to implement necessary reforms
• U.S. politics squarely under the spotlight as Trump and Clinton seen as biggest winners on ‘Super Tuesday’
  • Little direct impact on broad risk-asset space thus far, but investors increasingly mindful that prospect of Trump presidency could eventually weaken U.S. risk assets as protectionist rhetoric is priced into rates and credit mkts
• Risk Appetite model continues to claw back widening seen in early weeks of 2016

• CDX IG currently -1.4bps at 101.61 in overnight session; iTraxx Asia Ex Japan IG is currently -1.3bps at 151.59

NEWS

• Corporate News
• Stagecoach Repeats FY Adj. EPS Forecast, On Track for Year
• Tata Motors Rises After Report on PV Prices; Feb. Sales Up 6%
• Holcim Philippines 2015 Net Income Rises 58.4% to 8.1b Pesos
• Automakers’ Best February Since 2000 Aided by Cheap Gas, Holiday
• Toyota Recalling ~350k Cars Worldwide to Fix Takata Air Bags
• Rolls-Royce Names ValueAct’s Singer to Board Amid Overhaul

• Financial News
• Nedbank Full-Year Profit Rises 9.4% After Retail Client Increase
• Virgin Money 2015 Underlying Pretax GBP160.3m; Final Div 3.1p
• Deutsche Pfandbriefbank Full-Year Pretax Rises 12% to EU195m
• Barclays Bank of Zimbabwe FY Profit Rises 25% to $4.8m

• Rating News
• China Rating Outlook Cut as Moody’s Warns of Debt, Reform Risks

• Other News
• Deutsche Bank Says Fed Should Move in March Based on the Data
• Trump Wins Seven Super Tuesday States as Cruz Gets Two Victories

ANALYST VIEWS

• It will be all good for a couple of weeks. Feed into it, or de-risk? Equities and just about all other risk assets are counting on it, but we believe bond markets will be the medium-term outperformers: creditmarketdaily.com

NEW ISSUES

• Deutsche Bank EU750m 8Y Covered MS +2
• NRW Bank $500m 3Y FRN 3mL +43
• State of Bremen EU150m 0.375% 2/2024 Tap at MS -2
• Danske Bank EU1b 5Y Covered MS +16
• EIB EU400m 2.75% 9/2025 Tap MS -14
• Unibail-Rodamco EU500m 10Y MS +100
• Belgium EU3.5b 30Y MS +63
• Daimler EU1B 2Y FRN 3ME +48
• Daimler EU1.5B 3.5Y MS +70, EU1B 10Y MS +105
• Kommunekredit $500m 9/2017 FRN 3mL +18
• Thyssenkrupp EU750m 5Y 2.875%

• European IG credit pipeline here and HY credit pipeline here
• Issuers exposed to S-T rollover and interest-rate reset risk here

• NOTE: Simon Ballard is a credit strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.

(Bloomberg) -- JGBs are falling, led by short- and medium-term sectors; 2-year yield up 1 bp to -0.220%, 5-year yield up 1.5 bps to -0.205%.

• Overnight call rate and short-term GC repo rate haven’t extended declines deeper into negative territory, G20 meeting has reduced expectations for a BOJ rate cut in March and outcome of BOJ’s debt purchases was weak, says Naoya Oshikubo, rates strategist at Barclays, in an interview
• “Against this backdrop, there’s a sense that the recent drop in short- to medium-term yields is excessive, so markets are undergoing a correction,” Tokyo-based Oshikubo says
• Sees investor demand for 10-year JGBs emerging when yields are near 0%; NOTE: 10-year yield is at -0.040% vs -0.070% on March 1
• Adds various investors including regional banks appear to be shifting their interest to 20-year tenor from 10-year tenor
• 20-year JGB yield down 1.5 bps to 0.480%

(Bloomberg) -- A roundup of debt rating changes of Indian cos. To get this story sent to your inbox in real-time, run NI INRATINGS , click on Display & Edit, then Set Alert Delivery. DOWNGRADES:

• Indian Overseas Bank
  • Basel III Tier 1 bonds cut to BBB from A- at Care Ratings
  • Cites higher than anticipated losses reported during 3Q of FY16

• Pioneer Fabricators
  • Long-term loan facilities cut to B- from B at Crisil
  • Cites weak debt protection metrics

• PNB Housing Finance
  • NCDs cut to AA+ from AAA at ICRA
  • Revises rating following Punjab National Bank’s rating change of senior bonds

• RBD International
  • LT loan facilities cut to D from B+ at Crisil
  • Cites default by the group in servicing bank debt

• RCL Paper
  • LT bank facilities cut to D from BB at Care Ratings
  • Cites delays in servicing of debt obligations

UPGRADES:

• Hazaribagh Ranchi Expressway
  • Term loans revised to AA- from A at ICRA
  • Cites part refinancing of term loans with long tenure fixed rate debt which resulted in extension of repayment period

• Igarashi Motors
  • LT bank facilities revised to A+ from A at Care Ratings
  • Cites improvement in operational and financial performance during FY15

• Jindal Worldwide
  • LT loan facilities revised to BBB from BBB- at Crisil
  • Cites improving accruals, absence of any major debt funded capex plans over the medium term

• N G Fertilizers
  • Cash credit limits revised to BB+ from BB at ICRA
  • Cites healthy cash accruals due to increased scale of operations

• Pacific Development
  • Term loans raised to A- from BBB+ at ICRA
  • Cites successful refinancing and enhancement of loan against escrowed lease rentals of the co. at a significantly lower rate of interest

• Whirlpool of India
  • LT loan facilities revised to AA from AA- at Crisil
  • Expects higher revenue growth, operating profitability over medium term

(Bloomberg) -- Amplifon (AMP IM) and Gruppo Editoriale L’Espresso (ES IM) are among companies reporting 2015 results. (Please click here for Italy Daybook news alert.) ALL TIMES CET GOVERNMENT:

• 9:30am: Finance Minister Padoan and head of Italy’s banking lobby Patuelli speak at Luiss conference on strategies to fight money laundering.

EARNINGS:

• Amplifon
• L’Espresso
• Banzai (BANZ IM)
• Il Sole 24 Ore (S24 IM)

EQUITIES:

• Fiat Makes Biggest Europe Push in Decade to Save 2018 Goals
• Luxottica Earmarks More Than $1.6 Billion to Speed Up Expansion
• Vivendi Boosts Telecom Italia Stake to 23.80% from 22.8%

MARKETS:

• Benchmark FTSE MIB Index rose 2.2% to 18,011.91
• Italian 10-year yield spread with German bunds narrowed 8 bp to 123 bps

(Bloomberg) -- Philippine Amusement started investigation on new report that ~$100m of funds with suspicious origins remitted to bank accounts of 3 casinos, it says in statement.

• Regulator expects casinos to submit comments this week
• Agency known as Pagcor requires casinos to employ strict internal control policies on fund movements and issuances of playing chips
• Casinos implement “know your customer” protocols, records of financial transactions can be scrutinized by Pagcor on demand
• None of casinos mentioned in report have accounts with bank through which funds in question entered Philippine financial system
• “While it is doing its own inquiry, Pagcor believes that the Anti-Money Laundering Council is currently in a better position to deal with the issue as the casino industry also relies on the AMLC safeguards within the Philippine banking system,” agency says; adds agency has been one of council’s resources in course of review of anti-money laundering law
• NOTE: Philippines Probes $100m Money Laundering Via Banks: Inquirer Link
• NOTE: Philippines Faces Risk of Return to Money Launder Watchlist: SEC Link