Halister News

(Bloomberg) -- The market is paying close attention to the BOJ’s bond purchase operations Friday as the yields on five- and 10-year government debt rise, says Naoya Oshikubo, rates strategist at Barclays Securities Japan.

• 5-year yield rises to -0.05%, near the level that BOJ conducted fixed rate operation at -0.04% on Nov. 17
• There are expectations that 10-year yield will find it hard to breach 0.11%, but if BOJ doesn’t take action, then the market could push the 10-year yield higher
• It will be important for market participants to see the amounts that the central bank buys in the 5-to-10 year zone on Friday
• Under current pace of rising yield, fixed rate operation could not be the only tool to cap the rise in JGB yields
• NOTE: Previous amount of bond purchase in 5-to-10 year zone was 450b yen on July 5
• NOTE: 10-year JGB yield earlier rose to 0.1% for the first time since Feb. 15

--With assistance from Chikafumi Hodo. To contact the reporters on this story: Daisuke Sakai in Tokyo at dsakai2@bloomberg.net; Kazumi Miura in Tokyo at kmiura1@bloomberg.net To contact the editors responsible for this story: Tan Hwee Ann at hatan@bloomberg.net Patricia Lui

(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

• Supertech
  • Long-term bank facilities cut to D from BB+ at Care
  • Cites delays in debt serving
• Wockhardt
  • LT bank facilities cut to AA- from AA at Care; planned INR2.5b NCDs also cut to AA- from AA
  • Cites deterioration in operational performance due to continued import alert by USFDA on some of its facilities, impact of Brexit in U.K., increasing pricing pressure in the U.S. generics market

UPGRADES

• Arisudana Industries
  • LT bank facilities raised to BBB+ from BBB at Care
  • Cites increased income, improved profitability margins
• Bharat Electrical Contractors
  • LT bank facilities raised to BBB from BBB- at Care
  • Cites growth in operating income, improved operating profitability
• DRB Ravani Developers
  • LT bank facilities raised to BB+ from BB at Care
  • Cites lower sale-ability risk of its under-construction high-end residential project due to healthy booking status
• Laurus Labs
  • LT bank facilities raised to AA- from A+ at Care
  • Cites growth in total operating income, coupled with significant growth in profit
• Mahakaleshwar Tollways
  • LT bank facilities raised to BB+ from BB at Care
  • Cites improvement in toll collection
• Penver Products
  • LT bank facilities raised to BB+ from BB at Crisil
  • Cites significant improvement in business-risk profile
• Sanwaria Agro
  • Fund-based facility raised to BBB from BBB- at Brickwork
  • Cites improvement in financial risk- profile
• Transformers & Rectifiers
  • LT bank facilities raised to A- from BBB+ at Care
  • Cites significant growth in scale of operations, better-than-expected profitability

(Bloomberg) -- U.S. trailing-12-month speculative-grade corporate default rate rose to 3.8% in June from 3.6% in May, S&P analysts Diane Vazza, Sudeep Kesh and Gregg Moskowitz say in report.

• One of five June defaults was from energy sector, which has an estimated HY default rate of 18.6% versus ex-energy of 2.1%
  • Junk default rate should fall to 3.3% by March 2018
  • Retail & restaurants sector had highest distress ratio among all sectors at 21.2%; total U.S. distress ratio was 7.4%
• European trailing-12-month speculative-grade corporate default rate fell to 2.1% in June from 2.3% in May, analysts say in separate note
  • Rate expected to stay ~2% through March 2018 versus average trailing-12-month default rate of 3.2% between January 2002- March 2017
• Earlier: U.S. Investment Grade Issuance Slumps in June, Fails to Break $100b

To contact the reporter on this story: Molly Smith in New York at msmith604@bloomberg.net To contact the editors responsible for this story: Nikolaj Gammeltoft at ngammeltoft@bloomberg.net Kenneth Pringle