CO RPO RATE CREDIT - Janney Montgomery Scott Library/Fixed Income/Issuance and Ratings...JANNEY CO RPO RATE CREDIT MAY 20, 2016 aey MooMey o 1 M M ye fa ... 17-May Georgia Tech Fndtn

Issuance & RatIngs MonItoRj a n n e y c o R p o R at e c R e d I tMay 20, 2016

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Issuance & RatIngs • Page 1

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INfoRmatIoN & DIsclaImeRs

Jody Lurie corporate credit analyst 215 665 6191 [email protected]

see page 5 for important information regarding certifications, our ratings system as well as other disclaimers.

The Issuance & Ratings Monitor is a weekly publication recapping the prior five trading days’ changes in the corporate bond space.

Week of May 13 – 19

• Public corporate new issuance came in at $82.0B this versus $62.4B last week, as a few notable deals tipped the scale this week.

• Investment grade credit spreads were 11 basis points and high yield 92 basis points tight of year-end 2015, as spreads tightened then widened this week.

New Issues: Investment Grade

Source: Janney FISR; FINRA TRACE; Moody’s; S&P; Fitch; ex-144a/REG S/sovereign debt; “*” in chart denotes under review

Date Issuer Cpn MaturitySpread

+TsySize

($MM)Moody's S&P

19-May Southern 4.250% Jul-2036 +165 bps 500.0 Baa2 A-19-May Southern 1.550% Jul-2018 +70 bps 500.0 Baa2 A-19-May Southern 1.850% Jul-2019 +80 bps 1,000.0 Baa2 A-19-May Southern 2.950% Jul-2023 +130 bps 1,250.0 Baa2 A-19-May Southern 2.350% Jul-2021 +100 bps 1,500.0 Baa2 A-19-May Southern 3.250% Jul-2026 +145 bps 1,750.0 Baa2 A-19-May Southern 4.400% Jul-2046 +180 bps 2,000.0 Baa2 A-18-May HSBC Hldgs FRN May-2021 - 1,000.0 A1 A18-May HSBC Hldgs 2.950% May-2021 +160 bps 2,500.0 A1 A18-May HSBC Hldgs 3.900% May-2026 +210 bps 2,500.0 A1 A18-May HSBC Hldgs 3.600% May-2023 +195 bps 2,000.0 A1 A18-May KFW 1.500% Jun-2021 +22 bps 5,000.0 Aaa AAA18-May Priceline Gp 3.600% Jun-2026 +180 bps 1,000.0 Baa1 BBB+18-May Whirlpool 4.500% Jun-2046 +190 bps 500.0 Baa1 BBB17-May Georgia Tech Fndtn 2.363% Nov-2022 +80 bps 0.3 Aa1 NR17-May Georgia Tech Fndtn 2.463% Nov-2023 +90 bps 0.3 Aa1 NR17-May Georgia Tech Fndtn 2.185% Nov-2021 - 0.4 Aa1 NR17-May Georgia Tech Fndtn 2.560% Nov-2024 +80 bps 0.4 Aa1 NR17-May Georgia Tech Fndtn 3.260% Nov-2031 - 2.7 Aa1 NR17-May Georgia Tech Fndtn 2.610% Nov-2025 +85 bps 3.1 Aa1 NR17-May Georgia Tech Fndtn 2.710% Nov-2026 +95 bps 3.2 Aa1 NR17-May Georgia Tech Fndtn 3.643% Nov-2036 +105 bps 4.0 Aa1 NR17-May Georgia Tech Fndtn 3.843% Nov-2048 +125 bps 15.8 Aa1 NR17-May Key Bank 3.400% May-2026 +167 bps 600.0 Baa1 BBB+17-May Toyota Motor Credit FRN May-2019 - 250.0 Aa3 AA-17-May Toyota Motor Credit 1.400% May-2019 +48 bps 1,000.0 Aa3 AA-16-May Boeing 3.375% Jun-2046 +95 bps 400.0 A2 A

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• Inflows into investment grade funds for the week ending May 18 totaled $1.1B, per Lipper, versus the prior week’s $1.1B of inflows. Inflows into high yield funds totaled $1.1B versus the prior week’s $1.9B of outflows.



Date Issuer Cpn MaturitySpread

+TsySize

($MM)Moody's S&P

19-May Allegheny Tech 4.750% Jul-2022 - 250.0 B2 B18-May Entergy New Orleans 4.000% Jun-2026 +213 bps 85.0 Ba1 BBB18-May HomeStreet 6.500% Jun-2026 +473 bps 65.0 NR NR18-May Solemint Heights Ptnrs 8.000% Nov-2031 - 25.2 NR NR18-May Vereit Operating Ptnrs 4.125% Jun-2021 +272 bps 400.0 Ba1 BB+18-May Vereit Operating Ptnrs 4.875% Jun-2026 +301 bps 600.0 Ba1 BB+17-May AerCap 3.950% Feb-2022 +270 bps 1,000.0 Ba1 BBB-17-May Petrobras Glbl Finance 8.750% May-2026 +723 bps 1,750.0 B3 B+17-May Petrobras Glbl Finance 8.375% May-2021 +733 bps 5,000.0 B3 B+16-May Nat'l Commerce VAR Jun-2026 - 25.0 NR NR

New Issues: High Yield

Ratings Changes: Investment Grade—Moody’s, S&P, and Fitch

Company Name

Date Rtg Type

AgencyCurrRtg

PriorRtg

Industry Type

American Honda Finance 18-May Outlook Moody's NEG Auto MfgAtmos Energy 13-May LT Foreign Issuer S&P A A- Nat Gas DistribCardinal Health 18-May Outlook Moody's POS PharmaDelta Air Lines 19-May LT Issuer Default Fitch BBB- BB+ AirlinesMacy's 19-May Outlook Moody's NEG RetailersOhio Power 13-May Outlook Moody's POS Electricity NtwrksPeople's United Bank 16-May Issuer Moody's Baa2 Baa1*- BanksPfizer 16-May Outlook Moody's NEG PharmaProgressive 19-May LT Local Issuer S&P A A+ InsuranceRayonier 17-May Snr Unsec Debt Moody's Baa3 Baa2*- REIT

16-May Boeing 1.875% Jun-2023 +55 bps 400.0 A2 A16-May Boeing 2.250% Jun-2026 +63 bps 400.0 A2 A16-May CVS Health 2.125% Jun-2021 +92 bps 1,750.0 Baa1 BBB+16-May CVS Health 2.875% Jun-2026 +122 bps 1,750.0 Baa1 BBB+16-May Entergy Louisiana 3.050% Jun-2031 +135 bps 325.0 A2 A-16-May San Diego G&E 2.500% May-2026 +78 bps 500.0 Aa2 A16-May State Street 2.650% May-2026 +92 bps 750.0 A1 A16-May State Street 1.950% May-2021 +70 bps 750.0 A1 A13-May AGL Capital 3.250% Jun-2026 +158 bps 350.0 Baa1 BBB+13-May Caterpillar Fin'l Svcs FRN Nov-2017 - 250.0 A2 A13-May Caterpillar Fin'l Svcs 1.350% May-2019 +48 bps 600.0 A2 A13-May CenterPoint Energy 1.850% Jun-2021 +67 bps 300.0 A1 A



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Ricoh 18-May LT Foreign Issuer S&P A- A Office ElectronicsRicoh 18-May Outlook S&P NEG Office ElectronicsSouthern 13-May Snr Unsec Debt Moody's Baa2 Baa1 Integrated UtilsStaples 18-May Snr Unsec Debt Moody's Baa2 Baa2*- RetailersWebster Fin'l 13-May LT Foreign Issuer S&P BBB BBB- BanksWyeth 16-May Outlook Moody's NEG Pharma

Ratings Changes: High Yield—Moody’s, S&P, and Fitch

Company Name

Date Rtg Type

AgencyCurrRtg

PriorRtg

Industry Type

21st Century Oncology 17-May LT Foreign Issuer S&P CCC*- B-*- Health Care SvcsAllegheny Tech 16-May LT Foreign Issuer S&P B B+ Steel ProducersAllegheny Tech 16-May Outlook S&P NEG Steel ProducersAtlas Resource Pntrs 17-May LT Foreign Issuer S&P CCC- B- Oil & Gas E&PAtlas Resource Pntrs 17-May Outlook S&P NEG Oil & Gas E&PBreitburn Energy Ptnrs 16-May LT Corp Family Moody's Ca Caa2 Oil & Gas E&PBreitburn Energy Ptnrs 16-May LT Foreign Issuer S&P D CC Oil & Gas E&PCCO Hldgs 16-May LT Issuer Default Fitch BB+ BB-*+ Cable NetworksCharter Comm Operating 16-May LT Issuer Default Fitch BB+ BB-*+ Cable NetworksChesapeake Energy 19-May LT Foreign Issuer S&P CCC SD Oil & Gas E&PChesapeake Energy 13-May LT Foreign Issuer S&P SD CCC Oil & Gas E&PChesapeake Energy 19-May Outlook S&P NEG Oil & Gas E&PDenbury Resources 16-May Prob’ty of Default Moody's Caa2/LDCaa2 Oil & Gas E&PDenbury Resources 16-May Outlook Moody's NEG Oil & Gas E&PEP Energy 17-May LT Corp Family Moody's Caa1 B3 Oil & Gas E&PEP Energy 17-May Outlook Moody's NEG Oil & Gas E&PForum Energy Tech 19-May LT Foreign Issuer S&P B B+ Oilfield SvcsForum Energy Tech 19-May Outlook S&P NEG Oilfield SvcsGap 19-May LT Foreign Issuer S&P BB+ BBB- RetailersGriffon 13-May Snr Unsec Debt Moody's B2 B1 Home ImprvmtHilton Worldwide 17-May LT Corp Family Moody's Ba2 Ba3*+ LodgingIcahn Enterprises 17-May LT Foreign Issuer S&P BB+ BBB-*- Private EquityKey Energy Svcs 18-May LT Corp Family Moody's Ca Caa2 Oilfield SvcsKey Energy Svcs 18-May Outlook Moody's NEG Oilfield SvcsKey Energy Svcs 16-May LT Foreign Issuer S&P CCC- CCC+ Oilfield SvcsKey Energy Svcs 16-May Outlook S&P NEG Oilfield SvcsNorthern Oil and Gas 13-May LT Foreign Issuer S&P CCC+ B- Oil & Gas E&PNorthern Oil and Gas 13-May Outlook S&P NEG Oil & Gas E&PPenn Virginia 13-May LT Corp Family Moody's Ca Caa3 Oil & Gas E&PQVC 18-May Outlook S&P NEG RetailersSandRidge Energy 16-May LT Corp Family Moody's Ca Caa2 Oil & Gas E&PSandRidge Energy 16-May LT Foreign Issuer S&P D CCC- Oil & Gas E&PStone Energy 19-May LT Corp Family Moody's Ca Caa2 Oil & Gas E&P




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Stone Energy 19-May Outlook Moody's NEG Oil & Gas E&PStone Energy 17-May LT Foreign Issuer S&P D CCC- Oil & Gas E&PTime Warner Cable 16-May LT Issuer Default Fitch BB+ BBB*- Cable & SatelliteTransocean 13-May LT Issuer Default Fitch B+ BB Oilfield SvcsTransocean 13-May Outlook Fitch NEG Oilfield SvcsTransocean 17-May LT Foreign Issuer S&P BB- BB+ Oilfield SvcsTransocean 17-May Outlook S&P NEG Oilfield SvcsWeatherford Int’l 17-May LT Foreign Issuer S&P BB- BB+ Oilfield SvcsWeatherford Int’l 17-May Outlook S&P NEG Oilfield SvcsWeatherford Int'l 13-May LT Corp Family Moody's B1 Ba3 Oilfield SvcsWeatherford Int'l 13-May Outlook Moody's NEG Oilfield Svcs




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Analyst Certification

I, Jody Lurie, the Primarily Responsible Analyst for this report, hereby certify that all of the views expressed in this report accurately reflect my personal views about any and all of the subject sectors, industries, securities, and issuers. No part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this research report.

Janney Montgomery scott LLC (“Janney”) Debt Research Disclosure Legend

Janney may seek compensation for investment banking services for any company listed in this report in the next 3 months. the research analyst is compensated based on, in part, Janney’s profitability, which includes its investment banking revenues. additional information available upon request.

Definition of Issuer/Company outlooks

Janney FIS employs a rating system which considers the company, but not any specific debt or equity securities of the company and is not making a recommendation with regard to any specific debt securities of the company. Outlooks reflect our opinion about how credit factors of the company may affect its credit rating(s).

Positive: Janney FIS believes there are factors which point towards improving issuer or sector credit quality which may result in potential credit ratings upgrades

Stable: Janney FIS believes there are factors which point towards stable issuer or sector credit quality which are unlikely to result in either potential credit ratings upgrades or downgrades.

Cautious: Janney FIS believes there are factors which introduce the potential for declines in issuer or sector credit quality that may result in potential credit ratings downgrades.

Negative: Janney FIS believes there are factors which point towards weakening in issuer credit quality that will likely result in credit ratings downgrades.

Definition of sector/Industry Ratings

Overweight: Janney FIS expects the target asset class or sector to outperform the comparable benchmark (below) in its asset class in terms of total return.

Marketweight: Janney FIS expects the target asset class or sector to perform in line with the comparable benchmark (below) in its asset class in terms of total return.

Underweight: Janney FIS expects the target asset class or sector to underperform the comparable benchmark (below) in its asset class in terms of total return.

Janney FIs outlooks Distribution as of 05/20/2016

Benchmarks

Asset Classes: Janney FIS ratings for domestic fixed income asset classes including Treasuries, Agencies, Mortgages, Investment Grade Credit, High Yield Credit, and Municipals employ the “Barclay’s U.S. Aggregate Bond Market Index” as a benchmark. Treasuries: Janney FIS ratings employ the “Barclay’s U.S. Treasury Index” as a benchmark. Agencies: Janney FIS ratings employ the “Barclay’s U.S. Agency Index” as a benchmark. Mortgages: Janney FIS ratings employ the “Barclay’s U.S. MBS Index” as a benchmark. Investment Grade Credit: Janney FIS ratings employ the “Barclay’s U.S. Credit Index” as a benchmark. High Yield Credit: Janney FIS ratings for employ “Barclay’s U.S. Corporate High Yield Index” as a benchmark. Municipals: Janney FIS ratings employ the “Barclay’s Municipal Bond Index” as a benchmark.

Disclaimer

Janney or its affiliates may from time to time have a proprietary position in the various debt obligations of the issuers mentioned in this publication.

Unless otherwise noted, market data is from Bloomberg, Barclays, and Janney Fixed Income Strategy & Research (Janney FIS).

This report is the intellectual property of Janney Montgomery Scott LLC (Janney) and may not be reproduced, distributed, or published by any person for any purpose without Janney’s express prior written consent.

This report has been prepared by Janney and is to be used for informational purposes only. In no event should it be construed as a solicitation or offer to purchase or sell a security. The information presented herein is taken from sources believed to be reliable, but is not guaranteed by Janney as to accuracy or completeness. Any issue named or rates mentioned are used for illustrative purposes only, and may not represent the specific features or securities available at a given time. Preliminary Official Statements, Final Official Statements, or Prospectuses for any new issues mentioned herein are available upon request. The value of and income from investments may vary because of changes in interest rates, foreign exchange rates, securities prices, market indexes, as well as operational or financial conditions of issuers or other factors. Past performance is not necessarily a guide to future performance. Estimates of future performance are based on assumptions that may not be realized. We have no obligation to tell you when opinions or information contained in Janney FIS publications change.

Janney Fixed Income Strategy does not provide individually tailored investment advice and this document has been prepared without regard to the circumstances and objectives of those who receive it. The appropriateness of an investment or strategy will depend on an investor’s circumstances and objectives. For investment advice specific to your individual situation, or for additional information on this or other topics, please contact your Janney Financial Consultant and/or your tax or legal advisor.

IB serv./Past 12 mos.outlook count Percent count PercentPositive 9 20.5 0 0Stable 27 61.4 0 0Cautious 7 15.9 0 0Negative 1 2.3 0 0

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CO RPO RATE CREDIT - Janney Montgomery Scott Library/Fixed Income/Issuance and Ratings...JANNEY CO RPO RATE CREDIT MAY 20, 2016 aey MooMey o 1 M M ye fa ... 17-May Georgia Tech Fndtn