Fitch assigns 'AAA' rating to Colorado bonds
Fitch Ratings, a nationally recognized statistical rating organization ( NRSRO) designated by the U.S. Securities and Exchange Commission, assigned a ' AAA' rating to the bonds issued by the Colorado Water Resources and Power Development Authority (CWRPDA, or the authority).
This is-Approximately $17.1 million drinking water revenue bonds, 2017 series A. The bonds are expected to sell via competitive bid on Nov. 2, 2017. Bond proceeds along with other available monies will be used to fund a loan to the town of Breckenridge, CO, to fund reserves at the required amount, and to pay for the costs of issuance.
It affirms its ' AAA' rating on the following CWRPDA outstanding debt: --$107.9 million senior lien drinking water revenue bonds; --$9.7 million subordinate lien drinking water revenue refunding bonds; -$222 million senior lien clean water revenue bonds; --$22.1 million subordinate lien clean water refunding revenue bonds; and--$16.3 million wastewater revolving fund revenue bonds.
The senior lien bonds, including the 2017 series A bonds, are secured by pledged loan repayments, reserves, funds in certain accounts, and account earnings. The subordinate lien bonds are secured by dedicated funds and moneys released after payments are made on senior lien debt serv- ice. Fitch's cash flow modeling demonstrates that CWRPDA's combined water pollution control (WPC) state revolving fund (SRF) and drinking water (DW) SRF program (the programs) can continue to pay bond debt service, even with loan defaults well in excess of Fitch's ' AAA' liability rating stress hurdle, as produced using its Portfolio Stress Calculator (PSC).
Meanwhile, Fitch Ratings, revised Beijing Capital Development Holding (Group) Co., Ltd.'s (known by its abbreviated Chinese name Shokai Group) Outlook to Negative from Stable. Shokai Group's leverage may decline in the second half of 2017 as the company plans to slow down its land acquisition. Even so, Fitch expects Shokai Group's leverage to fall below 65% only in 2019. However, if it continues to be aggressive in acquiring land and fails to deleverage in the second half of 2017, Fitch may consider downgrading the homebuilder's ratings.
Shokai Group's Long-Term Foreign-Currency Issuer Default Rating (IDR) has been affirmed at ' BBB-', and its senior unsecured rating and the ratings of all outstanding bonds have also been affirmed at 'BBB-'. The Negative Outlook reflects the Beijing-based homebuilder's aggressive land banking, which has resulted in a rapid increase of its leverage, as measured by net debt before including guarantees/adjusted inventory, to 70% at end-1H17, from 63.2% at end-2016.
Shokai Group's ratings are two levels above its standalone
credit profile of ' BB'. The rating uplift reflects its moderate linkage with its parent, the State-owned Assets Supervision and Administration Commission (SASAC) of Beijing's municipal government, in line with Fitch's Parent and Subsidiary Rating Linkage criteria.
Moreover, Fitch Ratings expects Lendlease Corporation Limited's (BBB-/Stable) recurring investment earnings to remain strong following the sale of a 25% stake in its Australian retirement village business.
projects will support growth of funds under management and, at the same time, new sector opportunities, including investment in telecom infrastructure assets and private rental schemes, will support its portfolio management model. Lendlease's publicly stated targets, including a 40%-60% capital allocation to the investment segment (financial year ending June-2016 (FY16): 52%) and an investment-segment EBITDA contribution to the group of 30%-40% (FY16: 36%), underpin our expectation of a continued strong recurring revenue stream.