S&P upgrades South Africa as Fitch affirms rating and debt peak forecast rises to 77.9% South Africa received a dual boost from ratings agencies on Friday (November 14) as Fitch affirmed its sovereign rating and S&P Global Ratings ...

South Africa received a dual boost from ratings agencies on Friday (November 14) as Fitch affirmed its sovereign rating and S&P Global Ratings ... Bne IntelliNews #SouthAfrica #SPRatings #FitchRatings #CreditRating #Economy

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Whirlpool outlook revised to negative by S&P on weak forecast Investing.com -- S&P Global Ratings has revised its outlook on Whirlpool Corp (NYSE:WHR). to negative from stable while affirming the company’s ratings, citing expectations of continued weak profitability and elevated leverage through 2025. The ratings agency now forecasts Whirlpool’s adjusted leverage will remain at approximately 5x at the end of fiscal 2025, higher than its previous 4.5x projection, before improving to 4.4x by the end of 2026. S&P maintained its ’BB+’ long-term issuer credit rating and ’B’ short-term issuer credit and commercial paper rating on the appliance manufacturer. The negative outlook reflects ongoing challenges in Whirlpool’s North American major domestic appliance market, including higher-than-expected inventory levels, uncertainty around tariffs, weak consumer sentiment, and limited pricing power. According to S&P, Whirlpool’s Asian competitors pulled forward imports ahead of potential tariffs, creating an estimated 60-90 days of excess supply in the channel as of May 2025. This inventory overhang could persist further into 2025 and possibly into 2026. The company’s ability to raise prices will likely remain constrained in what S&P describes as a "highly promotional environment," at least until the inventory surplus clears. Production cutbacks are also reducing operating leverage, further hindering margin recovery. S&P noted that the sale of Whirlpool India could be delayed until early 2026, potentially postponing the company’s target to repay $700 million of gross debt in fiscal 2025. This would require Whirlpool to rely on its $3.5 billion revolving credit facility to repay the $300 million outstanding on its term loan in 2025. Management’s recent recommendation for a 50% dividend cut, which S&P expects will be approved by the board, is considered a "modest credit positive" as it will preserve approximately $200 million in cash annually to help address upcoming debt maturities. S&P indicated it could lower Whirlpool’s ratings if operating performance falls short of expectations, sustaining adjusted leverage above 4.5x. Conversely, the outlook could return to stable if improving performance and prudent financial policies keep leverage below 4.5x. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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Seven & i Holdings downgraded to ’A-’ by S&P on weaker store results Investing.com -- S&P Global Ratings has downgraded Seven & i Holdings Co. Ltd. to ’A-’ from a higher rating, citing weakened competitiveness in its convenience store business across Japan and North America. The rating agency pointed to ongoing challenges at the company’s U.S.-based 7-Eleven operations, which generate between 50% and 60% of the group’s EBITDA. The U.S. business has been underperforming competitors for the past two years due to its pricing strategy amid persistent inflation, resulting in declining customer traffic and negative same-store sales growth. In Japan, Seven-Eleven Japan is also struggling to meet consumer needs with its pricing policies as shoppers continue to seek cost savings. While its average daily sales remain about 20% higher than domestic rivals Family Mart Co. Ltd. and Lawson Inc (TYO:2651)., this gap is gradually narrowing. S&P does not anticipate a quick recovery for the convenience store operations in either region. EBITDA declined significantly in fiscal 2024 (ended February 28, 2025) at both 7-Eleven and Seven-Eleven Japan. For 7-Eleven, S&P expects EBITDA to recover moderately over the next one to two years from $3.6 billion (approximately ¥550 billion) in fiscal 2024, supported by price policy revisions and improved store operation efficiency. In Japan, EBITDA is expected to remain stable at ¥330 billion or more over the next one to two years, compared to ¥323.5 billion in fiscal 2024. However, S&P estimates it will take two to three years for the combined EBITDA of both regions to recover to the fiscal 2023 level of about ¥940 billion. The rating agency also noted that Seven & i’s financial policy has become less conservative, with plans to allocate 40% each of its ¥7.5 trillion cash inflow to growth investments and shareholder returns. The debt to EBITDA ratio is expected to improve from 3.2x in fiscal 2024 to just under 3x in the current fiscal year. S&P maintained a stable outlook on the rating, reflecting its view that EBITDA will remain stable despite the competitive environment as the company strengthens measures to recover profits in its convenience store businesses. The rating agency warned it would consider further downgrades if Seven & i’s debt to EBITDA deteriorates to over 3.5x, or if the company experiences delays in responding to changes in consumer behavior leading to significant declines in profitability. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. Don't miss out on the next big opportunity! Stay ahead of the curve with ProPicks AI – 6 model portfolios fueled by AI stock picks with a stellar performance this year... In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech Stocks, and Mid Cap stocks, you can explore various wealth-building strategies. So if 3382 is on your watchlist, it could be very wise to know whether or not it made the ProPicks AI lists.

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Dana stock rating placed on CreditWatch positive by S&P amid sale of off-highway business S&P Global Ratings placed Dana Inc. (NYSE:DAN) on CreditWatch positive Thursday following the company’s agreement to sell its off-highway business to Allison Transmission Holdings (NYSE:ALSN) for $2.7 billion. Dana plans to use approximately $2 billion of the $2.4 billion in net proceeds to repay debt, which S&P expects will significantly improve credit metrics despite losing its most profitable segment. The rating agency projects that after the debt reduction, Dana’s adjusted free operating cash flow to debt will improve to above 10% and adjusted leverage will fall below 4x. The auto parts supplier also announced a $1 billion capital return program through 2027, with $550 million expected to be distributed in 2025. While these shareholder returns will partially offset debt reduction benefits, S&P still anticipates improved credit metrics following the transaction. Dana’s off-highway division generated $2.6 billion of the company’s $9.9 billion in revenue for the trailing 12 months ended first quarter of fiscal 2025, with management-adjusted EBITDA margins of 14.7% compared to overall company margins of about 8.6%. The company is pursuing a $300 million cost-reduction plan to offset some margin impact from the sale. The transaction is expected to close late in the fourth quarter of 2025, subject to regulatory approvals and closing conditions. S&P indicated at least a 50% chance it will raise Dana’s ratings upon completion of the deal, pending assessment of the company’s post-close capital structure and credit metrics. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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Cleveland-Cliffs credit outlook revised to negative at S&P, ’BB-’ rating affirmed CLFSTLC hereremove ads hereremove ads Latest comments Install Our AppScan QR code to install app Google Play App Store Blog Mobile Portfolio Widgets About Us Advertise Help & Support Authors Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website. It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website. Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

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NTT Corp. credit ratings face potential downgrade at S&P Investing.com -- S&P Global Ratings has placed the credit ratings of NTT Corp. on CreditWatch with negative implications. This decision was reached following the announcement by NTT Corp. on May 8, 2025, of their intention to conduct a tender offer for NTT Data Group, a listed subsidiary, at a cost just under ¥2.4 trillion. The intention is to make NTT Data Group a wholly owned subsidiary. The funds for the tender offer are expected to be raised through debt, which may have a negative financial impact that could outweigh the potential positives for the company’s operations. The negative implications of the CreditWatch placement are based on the potential deterioration of NTT’s key cash flow indicators if the tender offer is completed as planned. The company intends to raise all necessary funds for the purchase through bridge loans from banks, later switching to long-term funds. NTT also plans to implement measures to alleviate its financial burden, which include asset sales. However, S&P Global Ratings estimates that the company’s debt-to-EBITDA ratio, a key cash flow indicator, will deteriorate from 2.7x at the end of March 2025 to the low-3x range after the completion of the tender offer. Despite the company’s pledge to maintain financial soundness while continuing to make growth investments and shareholder returns, S&P Global Ratings does not expect NTT’s key cash flow indicators to return to a clear recovery path for a year or two after the tender offer. If spending is expected to increase further, S&P Global Ratings may consider the company’s financial management to be less conservative. NTT’s strong relationships with major banks and its status as one of the world’s leading telecommunications companies will likely continue to allow it to raise significant amounts of money from major banks at favorable interest rates, even under financial stress. The impact of rising interest rates globally on the company’s financial profile is expected to be limited. S&P Global Ratings does anticipate that NTT has the potential to enhance management efficiency on a companywide basis to some degree. This is due to the expectation that NTT will strengthen the coordination of resources within the group to bolster its IT services business, expedite decision-making, and reduce costs on a groupwide basis. However, the positive impact of the tender offer on NTT’s overall business competitiveness and cash flow generation capacity could be limited. The creditworthiness of NTT Data Group has already been factored into the credit ratings on NTT on a consolidated basis as it was an important consolidated subsidiary before the tender offer. The CreditWatch placement will be resolved soon after the outcome of the tender offer is declared, if it concludes successfully on June 19, 2025. Upon resolution of the CreditWatch placement, S&P Global Ratings will scrutinize the degree of financial burden caused by the tender offer, as well as the content and plausibility of mitigation measures. They will also examine the outlook of its operating performance and its financial management policies. If the tender offer proceeds as planned and if it is judged that key cash flow indicators will deteriorate broadly in line with estimates, S&P Global Ratings is highly likely to downgrade the long-term issuer credit ratings on NTT by one to two notches. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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Ratings firm S&P warns Turkey’s tensions risk a setback for reforms LONDON (Reuters) -Credit rating firm S&P Global warned on Monday that the troubles triggered by the arrest of President Tayyip Erdogan’s main political rival could be a setback for Turkey’s economic reform programme. S&P, which raised Turkey’s rating twice last year due to the turnaround efforts, said the arrest and imprisonment of Istanbul Mayor Ekrem Imamoglu and other opposition politicians over the last week "could pose a risk to confidence in Turkey’s economy and the stability of the exchange rate". It added that the "second-round effects" of rising uncertainty on household spending, capital inflows, economic growth and inflation could also be "material". It could also interrupt the notable drop in "dollarization" - where Turks keep their money in dollars rather than in lira. Turkish authorities have detained 1,133 people since the start of protests five days ago against the detention of Istanbul Mayor Imamoglu, Interior Minister Ali Yerlikaya said on Monday. The clampdown has roiled markets, sending the lira, stocks and Ankara’s government bonds sharply lower, and prompted an outcry from the main opposition party and European leaders. The cost of insuring Turkey’s bonds against the risk of a default has also risen to the point where traders are now effectively pricing in a credit rating downgrade. That is unlikely in the short term, however. Both S&P and Fitch have ’stable’ outlooks on their BB- Turkey ratings, while Moody’s has a ’positive’ outlook on its B1 score, which is one notch lower than S&P and Fitch’s level.

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