Halister News

--EMMA ROSS-THOMAS

(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

• Aircel, Aircel Cellular, Aircel Smart Money, Dishnet Wireless
  • Long-term bank facilities cut to BB+(SO) from BBB-(SO) at Care
  • Cites increased dependence on promoter support to meet debt obligations following the lapse of merger of wireless business of Reliance Communications into Aircel
• Aircel, Aircel Cellular, Aircel Smart Money, Dishnet Wireless
  • Fund, non fund- based limits cut to BB- from BB+ at ICRA
  • Cites termination of merger of wireless business of RCom with Aircel
• RKC Infrabuilt
  • Term loan cut to D from BB+ at ICRA
  • Cites delays in servicing debt obligations

UPGRADE

• Bajaj Housing Finance
  • LT bank loans, NCD, Tier 2 debt raised to AAA from AA+ at India Ratings
  • Cites support from parent

--ADVEITH NAIR

(Bloomberg) -- The ruble strengthened for a third day against the dollar, while Russian government bonds also climbed as HSBC and Credit Agricole recommended going long on slowing inflation.

• RUB advances 0.3% to 57.6650/USD, after touching highest in a week
• NOTE: Weekly inflation in Russia was zero in seven days to Oct. 9 for the fifth straight week
• Bank of Russia will front-load rate cuts and lower key rate by 75bps later this year on the back of “powerful” disinflation, Credit Agricole analyst Sebastien Barbe writes in a research note
  • Barbe recommends long OFZ bonds due Jan. 2023 with 7.08% target, down 40bps from current levels
• Taylor rule suggests neutral nominal policy rate for Russia is about 4.5%-5%, meaning Bank of Russia will likely “over deliver on its guidance,” HSBC analyst Radoslaw Bodys writes in research note
  • Bodys recommends long OFZ bonds due Aug. 2021 with 6.8% target, down 70bps from current levels
• Brent oil for December falls 0.4% to $56.73/bbl
  • Brent crude in ruble terms falls to 3,269 vs 12-month average of 3,103
• Yield on Russian government bond due Feb. 2027 -1bp to 7.53%
• Micex index of shares declines 0.1% to 2,098.14

TODAY:

• 4pm: Bank of Russia reports weekly change in FX, gold reserves
• 4pm: Bank of Russia reports August trade balance (est. $5b surplus)
• 4pm: Bank of Russia reports foreign debt est. as of Oct. 1

BOND AND MONEY MARKETS:

• Treasury offers 400b rubles in 1-day OFZ repo auction
• Treasury offers 350b rubles in 7-day OFZ repo auction
• Treasury offers 55b rubles in 96-day deposits
• Bank of Russia sets 520b rubles limit at 4-day “fine tuning” deposit auction
• Pension Fund offers 7.2b rubles in 94-day deposits
• VTB offers 75b rubles in one-day bonds

To contact the reporter on this story: Vladimir Kuznetsov in Moscow at vkuznetsov2@bloomberg.net To contact the editors responsible for this story: Ven Ram at vram1@bloomberg.net Neil Chatterjee

(Bloomberg) -- BW Offshore’s short maturity bonds are trading 110bps wider than its longer-dated debt and a correction is due, Danske Bank’s credit analyst Bendik Engebretsen writes in a note published Oct. 11.

• Says investors should buy BWO’s bonds maturing in 2020 “outright”
• The main trigger is new extraction and storage vessel being prepared for commissioning which will contribute ~$240m to annual revenues, or 29% of last year’s total
• Says BW Offshore is still a “bondholder story” as part of 2016 financing initiatives, the bond covenants restrict the company from paying dividends or repurchasing stock 
  • “This implies that the only liquidity drain apart from repaying debt is more capital expenditure”
• See also, Nordic junk bond issuance on way to record as market broadens

To contact the reporter on this story: Leo Laikola in Helsinki at llaikola@bloomberg.net To contact the editors responsible for this story: Hannah Benjamin at hbenjamin1@bloomberg.net Chris Vellacott

(Bloomberg) -- Bund futures (RX1) technical levels in focus.

• Daily Trend Bias: Bullish w/caution
• Comment: Small losses posted Wednesday and RSI line at neutrality (50) obscures the immediate outlook; as such, caution is required and participants should monitor the upper (161.68) and lower boundary (160.82) or a ‘triangulation’ in place since late September
  • Resistance: 161.52; 161.68; 161.82; 161.98
  • Support: 161.17; 161.11; 161.07-05; 161.01; 160.85; 160.59
• NOTE: Roll-adjusted by difference in GFUT
• NOTE: Sejul Gokal is a FICC technical strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice

To contact the reporter on this story: Sejul Gokal in London at sgokal1@bloomberg.net To contact the editors responsible for this story: Ven Ram at vram1@bloomberg.net Anil Varma