Halister News

(Bloomberg) -- General Motors will cease sales in India and sell its South African plant, joint-venture shareholding and parts and distribution center to Isuzu Motors, according to co. statement.

• GM expects to realize annual savings of ~$100m from restructuring actions
• Co. plans to take ~$500m charge in 2Q, ~$200m of special charge will be cash expenses
• GM’s Talegaon plant will become an export-only facility, with Chevrolet vehicle sales in India ending by end-2017
• Isuzu will purchase GM’s Struandale plant, GM’s remaining 30% stake in Isuzu Truck South Africa JV
• GM to phase out Chevrolet brand in South Africa by end-2017, work with PSA Group to evaluate future opportunity for the Opel brand in the market
• NOTE: GM reached deal to sell Opel to PSA in February: Link

To contact the reporter on this story: David Welch in Southfield at dwelch12@bloomberg.net

(Bloomberg) -- Merck reported a good start to the year, but the development primarily at Performance Materials and the moderate organic growth rate reported for LifeScience give no reason to become more optimistic, Warburg analyst Ulrich Huwald write in client note.

• Rates stock hold, PT EU116
• Rather cautious FY guidance will not trigger earnings upgrades
• Performance Materials had a “moderate” start to the year also reflected in FY guidance, LifeScience was “roughly in line” and Healthcare reported “healthy” organic sales lifted by modified distribution agreement for Glucophage in China
• While Rebif and Erbitux had good start to the year, pressure on both products will remain, especially on Erbitux due to competition (Vectibix for example) and pricing
• Says Merck is currently valued roughly in line with its peers
• NOTE: Merck KGaA Profit to Show Little Change After New Drug Nod

--With assistance from Francesca Cinelli. To contact the reporter on this story: Roxana Zega in Zurich at rzega@bloomberg.net To contact the editors responsible for this story: Celeste Perri at cperri@bloomberg.net Brian Lysaght

(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

DOWNGRADE

• Kancheshwar Sugar
  • Long-term bank facilities cut to D from B at Crisil
  • Cites delays in servicing debt due to stretched liquidity

UPGRADES

• Bagmane Developers
  • Term loan raised to A+ from A at ICRA
  • Cites continued growth and diversification in lease income portfolio

• First Steps Babywear
  • Term loans raised to A+ from A at ICRA
  • Cites improvement in capitalization, stable profit margins

• Lakshmi Steel Rolling Mills
  • LT bank facilities raised to BB- from B+ at Crisil
  • Cites recovery in performance during fiscal 2017 due to increased ship-breaking activity

Economic Release Details: {PHGDPYOY Index ECOD} --CLARISSA BATINO