Bank and Capital Markets New Issue Revie · 2015-07-29 · Bank and Capital Markets New Issue Review 25 May 2015 ... Section 3 USD public bond market 6 ... company is also raising

Bank and Capital Markets New Issue Review

25 May 2015 – 29 May 2015

Capital & Debt Advisory

Market Leading Independent Debt Advisory Bank Market | Public Bonds | Private Placements | Ratings | Hedging | Retail Bonds

Contents Section 1 Market backdrop 2

Section 2 Bank loan market 3

Section 3 USD public bond market 6

Section 4 GBP public bond market 8

Section 6 EUR public bond market 10

Contacts United Kingdom Luke Reeve Tel: +44 20 7951 6548 Email: [email protected]

Chris Lowe Tel: +44 20 7951 0826 Email: [email protected]

Gary Davison Tel: +44 161 333 2767 Email: [email protected]

Europe Olivier Catonnet Tel: +33 1 5561 0535 Email: [email protected]

Jonathan H.M. Harfield Tel: +420 731 627 155 Email: [email protected]

Britta Becker Tel: +49 40 36132 20781 Email: [email protected]

Asia Lynn ThoTel: +65 6309 6688 Email: [email protected]

David Chew Tel: +65 6309 8085 Email: [email protected]

US & Canada K.C. Brechnitz Tel: +1 704 335 4211 Email: [email protected]

Tony Ianni Tel: +1 416 943 3476 Email: [email protected]

Australia Sebastian Paphitis Tel: +61 2 9248 4773 Email: [email protected]

Jason Lowe Tel: +61 3 8650 7600 Email: [email protected]

Section 7 Private placement market 12

Section 8 Ratings update 14

@EY_UKI

Section 9 Glossary 15

Section 5 ORB Retail bond market 9

EY Capital and Debt Advisory - New Issue Review 2

Market backdrop

ONS confirms lower than expected UK GDP, whilst focus returns to Greece ahead of €304m IMF payment

► Data from the Office for National Statistics (ONS) confirmed UK GDP expansion of just 0.3% for the first quarter of 2015, defying expectations of an upward revision to 0.4%. This represents the slowest expansion since Q4 2012, with net trade proving the largest drag on growth. The news sent 10-year gilt yields down to 1.81%, their lowest level in three weeks.

► Despite stronger economic data emerging from the embattled Eurozone in recent weeks, focus remains on Greek bailout discussions ahead of the country’s €304m payment to the International Monetary Fund (IMF) on 5th June. Greek yields on 10-year government debt rose 8bps to 11.17%, whilst Prime Minister Alexis Tsipras negotiated with the IMF and ECB to secure funds of €7.2bn due to Greece under the country’s second bailout in 2012.

► In the United Sates, a revised estimate saw the economy shrink by 0.7% in the first three months of 2015 compared to Q1 2014. A stronger dollar in recent months has reduced demand for US goods, resulting in trade dragging on growth. The data sent Treasury yields down, and raised the question as to whether the US economy can support the interest rate hike that is widely expected later this year.

► The price of oil fell as Brent Crude dropped to $63 a barrel. This reflected OPEC’s two and half year high production level of 31.22million bpd in May based on Reuters monthly survey. According to Carsten Fritsch, senior oil analyst at Commerzbank, OPEC continues to produce well above target, and also well above demand for its oil. OPEC due to meet in Vienna this week, but is not expected to alter production levels significantly.

Section 1: Market backdrop

Tenor 3yr 5yr 7yr 10yr 30yr

UK swap rate 1.19 1.50 1.71 1.90 2.17

Gilt rate 0.90 1.34 1.61 1.81 2.54

Tenor 3yr 5yr 7yr 10yr 30yr

US swap rate 1.17 1.63 1.94 2.21 2.65

UST rate 0.93 1.49 1.87 2.12 2.88

Source: Bloomberg

Source: Bloomberg Source: Bloomberg

Source: Bloomberg

0.0

0.5

1.0

1.5

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2.5

3.0

Yie

ld (

%)

10-year Benchmark yields

10yr UST 10yr Gilt 10yr Bund

0.0

1.0

2.0

3.0

4.0

2015 2017 2019 2021 2023 2025

Ra

te (

%)

3 month UK LIBOR forward rates

Current forward 3m UK LIBOR (-1 wk) fwd 3m UK LIBOR

2yr 3yr

4yr 5yr

7yr 10yr

(7)

(6)

(5)

(4)

(3)

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(1)

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Weekly change in UK SWAP

Bank loan market


Section 2: EUR/GBP bank loan market

Source: Loan Connector Source: Loan Connector

EUR / GBP completed transactions greater than US$250m

Issue date

Issuer Tranche rating (M, S&P)

Form Ccy Amount Maturity Margin (+bps)

Sector Ctry Leads

29-May ConvaTec Ba2, B+ TL EUR 752 - E + 363 Life Sciences US GS, JPM, MS

26-May Citycon , OTH EUR 250 2016 - Consumer Products FI Nordea, SEB

► Deal completions announced in the week were dominated by high-yield names, in a sign of the continuing flow of credit into sub-investment grade transactions – dominated by USD issuance. After a period of notable volatility in benchmark European rates, market conditions were seen as stabilising through the week and is anticipated to prompt an increase in activity as borrowers move to close deals ahead of the traditional summer slow-down.

► ConvaTec Healthcare, the medical products company, reverse flexed its new US$800 million and Euro-denominated US$850 million equivalent Term Loans, alongside a US$200 million Revolving Credit Facility, to refinance existing loans due 2016.

► Dynacast International, the precision metals company, successfully priced a US$530 million first-lien term loan to refinance its original buyout facility, setting margins at L+350bps and allocating at par, with maturity of January 2022. Credit ratings on the loan were Ba3 / B with company ratings at B2 / B.

► In a sign of the continuing interest of companies in securing financing for dividend recapitalisations, Epicor Software Corp priced its US$1.4 billion 7-year covenant-lite Term Loan-B facility at L+375bps, some 25bps inside initial guidance. Existing lenders in the company’s US$840 million Term Loan-B will be able to roll commitments at par in exchange for the proposed 75bps increase in pricing. The company is also raising US$610 million in second-lien notes as part of the financing.

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European pricing grid - multiyear drawn

AA A BBB

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250

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150

200

250

300

350

2Q

11

3Q

11

4Q

11

1Q

12

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12

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12

1Q

13

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13

3Q

13

4Q

13

1Q

14

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14

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14

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14

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15

Nu

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$b

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Western Europe Loan Volumes

Lev - Vol. ($Bils.) IG - Vol. ($Bils.)

Lev - No. of Deals IG - No. of Deals

Bank loan market


Section 2: USD Bank loan market

USD completed transactions greater than US$250m (Cont.)

Issue date



Sector Ctry Leads

29-May Boardwalk Pipelines Baa3, BB+ RCF US 1,400 2020 - Oil & Gas US Various

29-May ConvaTec Ba2, B+ RCF US 200 - - Life Sciences US GS, JPM, MS

29-May ConvaTec Ba2, B+ TL US 800 - E + 363 Life Sciences US GS, JPM, MS

29-May Dynacast Int - TL US 530 2022 L + 350 Oil & Gas US JPM

29-May Merrill Communication B2, BB- RCF US 50 - - Business Services US CS

29-May Merrill Communication B2, BB- TL US 510 2022 L + 525 Business Services US CS

29-May Plano Molding - OTH US 355 - - Chemicals US Golub

27-May Gunvor - RCF US 807 2016 L+155 Oil & Gas SG Various

27-May Gunvor - RCF US 105 2018 L+225 Oil & Gas SG Various

27-May Owens-Illinois - OTH US 2,250 - - Industrial US DB

27-May Quanta Computer - RCF US 120 2018 L+108 Technology TW Various

27-May Quanta Computer - RCF US 330 2020 L+125 Technology TW Various

27-May Traxys - RCF US 200 2016 - Business Services LU Various



26-May Apache - RCF US 3,500 - - Oil & Gas US MIZ

26-May Calpine Ba3, BB TL US 1,650 2022 L + 275 Power & Utilities US Various

26-May Epicor Software B2, B RCF US 100 - - Technology US Jeff, Macquarie, NOM

26-May Epicor Software B2, B TL US 1,400 2022 L + 375 Technology US Jeff, Macquarie, NOM

26-May Horizon Global - RCF US 100 2020 - Industrial US JPM

26-May Horizon Global B2, B TL US 200 2021 L + 600 Industrial US JPM

26-May Hubbard Radio B1, BB- RCF US 10 2020 L + 325 Technology US MS

26-May Hubbard Radio B1, BB- TL US 360 2022 L + 325 Technology US MS

26-May Hubbard Radio - TL US - 2022 - Technology US -

26-May Infiltrator B1, B+ TL US 245 2022 L + 425 Chemicals US DB

26-May Infiltrator Caa1, CCC+ TL US 100 2023 L + 875 Chemicals US DB

26-May Kronos - TL US - 2020 - Chemicals US -

Bank loan market


Section 2: USD Bank loan market

USD completed transactions greater than US$250m (Cont.)

Issue date



Sector Ctry Leads

26-May LightSquared - TL US 1,750 2020 L + 875 Technology US CS

26-May PT Solusi Tunas - RCF US 10 2019 L + 320 Power & Utilities ID Various

26-May PT Solusi Tunas - TL US 315 2019 L + 320 Power & Utilities ID Various

25-May Epicor Software - TL US - 2022 - Technology US -

25-May On Assignment Ba2, BB RCF US 100 2020 - Technology US Wells

25-May On Assignment Ba2, BB TL US 875 2022 - Technology US Wells

USD public bond market


Domestic

Section 3: USD public bond market

Source: Reuters Source: Reuters

Issue date

Issuer Tranche rating (M,S&P,F)

Form Amount (US$m)

Coupon Maturity Spread (T+bps)

Sector Ctry Leads

29-May Tops Holding B3, NR, NR SSN 560 8.000% 2022 +613 Consumer Products US BAML, Wells

28-May American Energy-Permian

B1, CCC+, NR SN 295 8.000% 2020 - Oil & Gas US Various

28-May CommScope Ba2, NR, NR SN 500 4.375% 2020 +287 Technology US Various

28-May CommScope NR, NR, NR SN 1,500 6.000% 2025 +387 Technology US Various

28-May Home Depot A2, A, A SN 1,250 2.625% 2022 +80 Consumer Products US Various

28-May Home Depot A2, A, A SN 1,250 4.250% 2046 +135 Consumer Products US Various

28-May MarkWest Ba3, BB, NR SN 1,200 4.875% 2025 +286 Oil & Gas US Various

28-May Meritage Homes Ba3, BB-, NR SN 200 6.000% 2025 +386 Real Estate US Various

28-May Norfolk Southern Baa1,NR,NR SN 500 4.450% 2045 +155 Transport US BML, JPM, MS

► The USD investment grade bond market closed the month with the third highest issuance on record at US$99 billion just behind September 2013 and November 2012, (US$104 billion and US$108 billion respectively).

► Home Depot and Time Warner were two of the largest issuers during the week contributing to the strong finish witnessed towards at the end of May.

► Home Depot (A2, A, A), the US based home improvement retailer, launched US$2.5 billion split equally between two tranches of 7- and 30-years. The shorter note priced 5bps inside guidance at T+80bps and the longer note also tightened at T+135bps.

► Time Warner (Baa2, NR, BBB+), the US media and entertainment giant, recently in the press due to ongoing takeover speculation by Charter Communication, launched two notes of 10- and 30-year tenors on Thursday . The US$600 million shorter note priced at T+150bps with the longer US$1.5 billion note at T+195bps; both tranches 5bps within initial guidance.

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Monthly US$ bond volumes

Domestic volume (US$) Cross-border volume (US$)

Cross-border number issued Domestic number issued

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USD secondary public bond spread 10-year

Avg. AA USD 10yr spreads Avg. A USD 10yr spreads

Avg. BBB USD 10yr spreads

USD public bond market


Section 3: USD public bond market

Issue date


Form Amount (US$m)


Sector Ctry Leads

28-May SandRidge Energy B1, B, NR SN 1,250 8.750% 2020 +723 Oil & Gas US Various

28-May Time Warner Baa2, NR, BBB+ SN 1,500 3.600% 2025 +150 Media & Entertainment US Various

28-May Time Warner Baa2, NR, NR SN 600 4.850% 2045 +195 Media & Entertainment US Citi

27-May FTS Intl B1, B+, B+ SN 350 Floats 2020 - Oil & Gas US Wells

27-May Wellcare Health Ba2, BB, NR SN 900 5.750% 2020 +314 Life Sciences US Various

27-May Xcel Energy A3, BBB+, BBB+ SN 250 3.300% 2025 +120 Power & Utilities US BAML, BAR, JPM

27-May Xcel Energy A3, BBB+, BBB+ SN 250 1.200% 2017 +58 Power & Utilities US BAML, BAR, JPM

26-May RPM Intl Baa3, BBB, BBB- SN 250 5.250% 2045 +238 Consumer Products US BAML, STAN

26-May Western Gas Baa3, BBB-, BBB- SN 500 3.950% 2025 +195 Power & Utilities US Various

Domestic (Cont.)

Issue date


Form Amount (US$m)


Sector Ctry Leads

29-May Dawn Victor NR, NR, NR SN 500 5.500% 2018 - Education CN DBS

27-May ArcelorMittal Ba1, NR, BB+ SN 500 6.125% 2025 +399 Mining & Metals LU Various

27-May ArcelorMittal Ba1, NR, BB+ SN 500 5.125% 2020 +359 Mining & Metals LU Various

27-May China Energy Reserve NR, NR, NR SN 200 5.250% 2018 - Power & Utilities BV BAR, Wing Lung, CITIC

27-May Cifi B1, B+, BB- SN 400 7.750% 2020 - Real Estate CN Various

26-May Canbriam Energy Caa1, NR, NR SN 100 9.750% 2019 +755 Oil & Gas CA CS, BMO, RBC

26-May China Energy Reserve NR, NR, NR SN 150 5.250% 2018 - Power & Utilities CN BAR, Wing Lung, CITIC

Cross Border

GBP public bond market


Section 4: GBP public bond market


Domestic

Cross-border

► No significant issuances during the week

Issue date


Form

Amount (GBPm)

Coupon Maturity Spread (G+bps)

Sector Ctry Leads

No significant issuances in the week

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GB

Pm

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Monthly GBP bond volumes

Volume (GBP) Number issued

Issue date


Form

Amount (GBPm)

Coupon Maturity Spread (G+bps)

Sector Ctry Leads

No significant issuances in the week

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GBP secondary public bond spread 10-year

Avg. AA GBP 10yr spreads Avg. A GBP 10yr spreads

Avg. BBB GBP 10yr spreads

ORB retail bond market


In the market

Recent Issues

Date Issuer Ratings (M,S&P,F) Form Amount (GBPm)

Coupon Maturity Sector Country

May-15 Wasps Rugby Club NR, NR, NR SSN 25-35 6.50% 2022 Sport & Leisure UK

May-15 Retail Charity Bonds NR, NR, NR SN 27 4.40% 2025 Real Estate UK

Apr-15 Provident NR, NR, BBB SN 50 5.13% 2023 Finance UK

Mar-15 Intermediate Capital Group

NR, BBB-, BBB- SN 160 5.00% 2023 Finance UK

Oct-14 Eros International NR, NR, NR SN 50 6.50% 2021 Media & Entertainment UK

Oct-14 A2D Funding NR, NR, NR SSN 150 4.50% 2026 Real Estate UK

Aug-14 Burford Capital NR, NR, NR SN 90 6.50% 2022 Finance UK

Jul-14 Golden Lane Charity NR, NR, NR SN 11 4.47% 2021 Real Estate UK

Jun-14 Ladbrokes NR, BB, BB SN 100 5.13% 2022 Leisure UK

Jan-14 Paragon NR, NR, NR SN 125 6.13% 2022 Finance UK

Dec-13 Premier Oil NR, NR, NR SN 150 5.00% 2020 Oil & Gas UK

Oct-13 A2Dominion NR, NR, AA- SN 150 4.75% 2022 Real Estate UK

Jul-13 Bruntwood NR, NR, NR SSN 50 6.00% 2020 Real Estate UK

Jun-13 Helical Bar NR, NR, NR SN 80 6.00% 2020 Real Estate UK

May-13 International Personal Finance

NR, NR, BB+ SN 70 6.13% 2020 Finance UK

Mar-13 Provident NR, NR, BBB SN 65 6.00% 2021 Finance UK

Mar-13 Paragon NR, NR, NR SN 60 6.00% 2020 Finance UK

Feb-13 EnQuest NR, NR, NR SN 145 5.50% 2022 Oil & Gas UK

Dec-12 Alpha Plus NR, NR, NR SSN 49 5.75% 2019 Education UK

Dec-12 UNITE NR, NR, NR SN 90 6.13% 2020 Real Estate UK

Section 5: ORB retail bond market

Date Issuer Ratings (M,S&P,F) Form Amount (GBPm)

Coupon Maturity Sector Country

No issuers currently in the market

EUR public bond market


► Unilever (A1, A+, NR), the consumer goods company launched, a short dated floating rate note (FRN) alongside a longer dated fixed rate note during the week. The order book on the FRN highlighted growing demand for these products The 3-year €750 million floater attracted pricing of +18bps, which was the tightest floater in 8 years. The 8-year €500 million offering attracted a coupon of 1.000% representing a spread of MS+38bps.

► Eli Lilly (A2, NR, A), the US pharmaceutical company, made its debut Euro issuance during the week with a three tranche offering split over 7-, 11- and 15-years. Although this deal could demonstrate appetite for longer dated notes, the spread for the longer 15-year note illustrates that this comes at a price. The deal closed with a €600 million 7-year at MS+45bps, €750 million at MS+70bps and €750 million at MS+107bps.

Section 6: EUR public bond market


Domestic Issue date


Form Amount (EURm)

Coupon Maturity Spread (B+bps)

Sector Ctry Leads

29-May Europcar Groupe B3, CCC+, NR SN 475 5.750% 2022 +563 Consumer Products FR Various

29-May Inmobiliaria Colonial NR, BBB-, NR SN 750 1.863% 2019 +195 Real Estate ES Various

29-May Inmobiliaria Colonial NR, BBB-, NR SN 500 2.728% 2023 +237 Real Estate ES Various

28-May TenneT NR, NR, A- SN 500 0.875% 2021 MS +45 Power & Utilities NL Various

28-May TenneT NR, NR, A- SN 500 1.750% 2027 MS +80 Power & Utilities NL Various

27-May Air Liquide Finance NR, A+, NR SN 500 1.250% 2025 MS +40 Chemicals FR Various

27-May Unilever A1, A+, NR SN 750 Floats 2018 +18 Consumer Products NL Various

27-May Unilever A1, A+, NR SN 500 1.000% 2023 MS +38 Consumer Products NL Various

26-May La Poste NR, A, A+ SN 500 1.125% 2025 +33 Transport FR Various

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Volume (EUR) Number issued

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EUR secondary public bond spread 10-year

Avg. AA EUR 10yr spreads Avg. A EUR 10yr spreads

Avg. BBB EUR 10yr spreads

EUR public bond market


Section 6: EUR public bond market

Issue date


Form Amount (US$m)


Sector Ctry Leads

29-May BRF Baa3, BBB, NR SN 500 2.750% 2022 MS+225 Consumer Products BR Various

28-May Expedia Ba1, NR, BBB- SN 650 2.500% 2022 MS +197 Consumer Products US BNP, JPM, GS

27-May Eli Lilly A2, NR, A SN 750 2.125% 2030 MS +107 Life Sciences US Various



Cross Border

Private Placement market


► In signs of increasing life in the US Private Placement market, a number of domestic and cross-border transactions were announced in the week. With clear indications of rate rises looming later in the year, we continue to expect a steady stream of issuers in the run in to the summer break.

► Manchester United Football Club (NAIC-2) – through its issuer MU Finance plc. – priced its first ever private placement, raising US$425 million of senior secured 12-year notes at 3.79%. Proceeds are anticipated to be used to refinance existing 8.375% notes due 2017 and callable in 2015.

► WinWholesale Inc., the industrial supplies and materials company viewed as NAIC-2, issed US$200 million of senior 10-year notes with final pricing of T+175bps; at the tight end of price talk.

► The utilities sector has seen a steady stream of issuance this year, the latest of which has come from NorthWestern Corp. The electricity and gas provider to customers in Montana, South Dakota and Nebraska priced US$75 million of 10-year notes and US$125 million of 30-year notes at T+100bps and T+125bps respectively.

► Not to miss out on investor demand, integrated waste services company Waste Connections Inc. – viewed as NAIC-2 – priced an up-sized deal of US$125 million of 7-year notes and US$375 million of 10-year notes at T+115bps and T+120bps respectively.

Section 7: US Private Placement market

Source: Private Placement Monitor Source: Bloomberg

Source: Private Placement Monitor Source: Private Placement Monitor

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US Treasury benchmark yields

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US Private Placement volumes

2011 2012 2013 2014 2015

Private Placement market


Section 7: US Private Placement market

Date Issuer Ratings Form Amount (US$m)


Sector Ctry

May-15 Basin Electric Power NAIC-1 FMB 750-1,000 - - Power & Utilities

US

May-15 Cabla's NAIC-2 SN 250 10yr, 12yr, 15yr - Consumer Products

US

Date Issuer Ratings Form Amount (US$m) Coupon Maturity Spread (T+bps)

Sector Ctry

May-15 Copenhagen Airport NAIC-2 (Baa2.BBB+)

SN DKK650 7yr, 10yr, 12yr, 15yr

+150-160 Transport DK

May-15 Shurgard Self-Storage - - 300 - - - - BE

Domestic: In the market

Domestic: Issued

Cross Border: In the market


Sector Ctry

May-15 NorthWestern NAIC-1 (A2/A-)

FMB 75

125 -

10yr 30yr

+100 +125

Power & Utilities

US

May-15 WinWholesale NAIC-2 SN 200 - 10yr +175 Consumer Products

US

May-15 Waste Connections NAIC-2 - 125 375

3.09% 3.41%

7yr 10yr

+115 +120

Waste Management

US

Cross Border: Issued


Sector Ctry

May-15 Manchester United FC NAIC-2 SSN 425 3.79% 12yr Hospitality & Leisure

UK

May-15 Grupo Pikolin NAIC-3 (BB)

- €10 €20

4.50% 5.00%

7yr 10yr

- Consumer Products

ES

May-15 Wereldhave NAIC-2 -

US$30 €50 €5

CAD$20 €65 £35

3.88% 2.10% 2.32% 4.00% 2.62% 3.76%

8yr 8yr

10yr 12yr 15yr 16yr

+180 MS+135 MS+139

CDA+219 MS+142 G+140

Real Estate NL

May-15 Consolidated Press NAIC-2 (BBB-)

SSN

US$402

AUS$73

4.21% 4.54% 4.64%

5.65% 6.05%

7yr 10yr 12yr

7yr

10yr

- Media & Entertainment

AU

► Vodafone Group PLC (U.K.-based telco) downgraded to BBB+/stable from A- by S&P

► Teollisuuden Voima Oyj (Finnish nuclear power producer) downgraded to BBB- from BBB by S&P

► E.ON SE (German utility) lowered to BBB+/negative from A- by S&P

► Pacific Drilling (Luxembourg-based provider of ultra-deepwater drilling services) downgraded to B3/negative from B2 by Moody’s

► Fortum Oyj (Finnish energy company) downgraded to Baa1/stable from A2 by Moody’s

Ratings Update New and notable from rating agencies


The above list highlights ratings developments that we believe are interesting or noteworthy. This list is not exhaustive.

Section 8: Ratings Update

► Maxeda DIY (Netherlands-based retailer) gets S&P B with negative outlook & Moody’s B2 with stable outlook

► Cellnex Telecom (Spanish telecom and broadcasting infrastructure group) gets S&P BB+ with stable outlook

► Altice S.A (Luxembourg-based telco) gets S&P B with stable outlook

► Amec Foster Wheeler Plc (U.K.-based consultancy for Oil & Gas sector) gets S&P BBB- with stable outlook

► Avast Holding (Netherlands-based security software company) upgraded to BB-/positive from B+ by S&P

► ION Trading Technologies (Ireland-based software company) raised to B+/positive from B by S&P

► Kingfisher PLC (British retailer) upgraded to BBB/stable from BBB- by S&P

► Erdemir (Turkish flat steel producer) raised to BB-/stable from B+ by S&P

► Groupama S.A. (French insurer) upgraded to BBB+/stable from BBB by Fitch

► No early end to quantitative easing is in sight for the Eurozone (S&P)

► Despite wave of Infrastructure capital, investment opportunities remain scarce (Moody’s)

► Strong Dollar to act as headwind for US Multinational revenues (Fitch)

► Growth in Spanish corporate bond issuance to be steady but modest in 2015 as improved access to bank financing, low M&A volumes and moderate refinancing needs offset new issuance from first-time issuers (Moody’s)

► Access to liquidity and exposure to the challenging domestic operating environment to shape credit quality for Russian Corporates (Moody’s)

► Push for a state-sponsored asset management company, or 'bad bank', solution to move impaired loans off Italian banks' balance sheets is credit positive for the sector (Moody’s)

Key

New ratings

Negative rating actions

25 May – 29 May 2015

Positive rating actions

Trends in financial markets and industry sectors

Asset-backed securitization ABS Not rated NR

Commercial mortgage-backed securitization CMBS Other loan OTH

Deep discount bond DDB Revolving credit facility RCF

Energy savings performance contract ESPC Senior note SN

First mortgage bonds FMB Senior secured note SSN

London interbank offered rate LIBOR Subordinated note SUB

Medium-term note MTN Term loan TL

ABN Amro ABN Jefferies & Co. JEF

Bank of America Merrill Lynch BAML JP Morgan JPM

BBVA Securities BBVA KBC Capital Markets KBC

Bank of Tokyo Mitsubishi UFJ BOTM Landesbank Baden-Wuerttemberg LBBW

Banco Santander SA SANT Lloyds Capital Services Ltd LCS

Bank of New York BNY Lloyds Banking Group LBG

Bank of Egypt BoE Banca March MAR

Bank of Nova Scotia BNS Mega International Commercial Bank Co Ltd MICBC

Bank of the West BoW Mitsubishi UFJ Financial MIS

Barclays Bank BAR Mizuho Financial Group Inc MIZ

BayernLB BLB Morgan Stanley MS

BMO Capital Markets BMO Natixis NAT

BNP Paribas Group BNP Norddeutsche Landesbank GZ NLB

Capital One Bank COB Nomura NOM

Calyon CAL PNC Capital Markets PNC

CIBC World Markets CIBC Rabobank RAB

Citi Citi RBC Capital Markets RBC

Commonwealth Bank of Australia CBA Raiffeisen Bank International RBI

Commerzbank AG CZB RBS RBS

Crédit Agricole CA Société Générale SG

Credit Suisse CS Scotia Capital Inc SCA

Deutsche Bank DB Standard Bank Plc SB

DnB NORD DnB Standard Chartered Bank STA

European Investment Group EIG National Bank of Egypt STET

Fortis Securities Inc FOR SRM Robinson Humphrey SRH

Goldman Sachs & Co GS Sumitomo SUM

HSBC HSBC UBS UBS

Itau BBA IBBA UniCredit Group UNI

ING Groep NV ING U.S. Bancorp USB

Intesa Sanpaolo SA ISP Wells Fargo Wells

Incapital LLC INC WestLB WLB

Banca IMI IMI WestPac WP

Glossary Technical abbreviations

Financial institution abbreviations


Section 9: Glossary

EY | Assurance | Tax | Transactions | Advisory

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Bank and Capital Markets New Issue Revie · 2015-07-29 · Bank and Capital Markets New Issue Review 25 May 2015 ... Section 3 USD public bond market 6 ... company is also raising