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Standard & Poor's (S&P) upgraded Malaysia's long term foreign currency rating from BBB to BBB+ on Saturday, underpinning the market's hopes that there will be a new flow of issuance from the country in the coming months. As reported last week (see EuroWeek 766), the agency had been considering improving Malaysia's rating as a result of the country's strengthening economy, restructuring efforts and strong external debt positions.

Australia Westpac Banking Corp will shortly embark on an Asian roadshow to update regional investors about its recent performance and strategy.

Wesfarmers launched its debut A$250m debut issue to a robust investor reception on Wednesday, taking advantage of a lacklustre Australian primary market. The conglomerate is already a darling of the equity market, but it proved itself to be a strong bond issuer too as investors flocked to buy up the debut transaction.

The Kingdom of Thailand's plans to launch a new benchmark dollar bond gained momentum this week when Standard & Poor's raised the outlook of the country's BBB- long term foreign currency rating outlook from stable to positive. The change is timely as the sovereign has only recently finished receiving bids for a potential $800m-$1bn new dollar bond. If the deal goes ahead, it will be the kingdom's first public dollar issue since 1997.

Carl Icahn's High River Limited Partnership has offered to buy all of XO Communications' outstanding senior secured bank debt at a price of 50, according to a memo obtained by LMW. The new offer is at a price 20 cents lower than Icahn's last offer, but Icahn is now offering to buy all of the bank debt instead of just one-third of it, which is what he had been after. As first reported last week on LMW's Web site, the deadline for the new offer is 5 p.m. tomorrow. Icahn could not be reached by press time.

Lenders are increasingly using credit default swaps to gain exposure to investment-grade loans, forgoing traditional participation in the primary market. Selling protection essentially gives the seller the same credit risk as direct participation in the loan, but the premium on the protection far outweighs the skinny pricing on investment-grade loans. Banks hurt by recent events in the investment-grade market are now looking at the same risk with better return, and LIBOR plus 12.5 basis points just doesn't add up.

While one friendly source was not able to furnish an LMW staffer with many story ideas, he was able to offer up a great tip. "Grab your golf clubs because nothing is happening," he said of the last week of August.

This chart, provided by Citibank/Salomon Smith Barney Inc., tracks bid-ask prices for par credit facilities that trade in the secondary market. It also tracks facility amounts, ratings, pricing and maturities.

Although the UK syndicated loans market has been quiet over the last four months, EuroWeek hears that a UK-based transport company and a UK-based catering company have both requested bids from lending banks for facilities of between £300m and £500m. Two UK building societies are also thought to be seeking funds. One institution is looking for a small deal of around £30m with the other is asking for £100m.

Deutsche Bank and Merrill Lynch hope to sign nine banks into the debt facilities backing the buy-out of Jefferson Smurfit Group by Madison Dearborn Partners by the end of next week. Of the 10 banks invited into the deal, HSBC, BNP Paribas and Royal Bank of Scotland opted not to join the deal. Arrangers then invited a further two banks -Crédit Lyonnais and HBOS - into the first phase of underwriting. Both of those banks are expected to join the deal.

BNP Paribas this week sent out information memorandums to the banks selected to sub-underwrite the debt facilities backing the buy-out of CFP Flexible Packaging from SNIA. Banks can expect formal invitations next week.

Bank of Tokyo-Mitsubishi has completed a ¥5bn credit for communications equipment manufacturer Tsuzuki Denki Co. The arranger held ¥2bn. Sumitomo Mitsui Banking Corp and Mizuho Bank joined as lenders providing ¥1.8bn and ¥1.2bn respectively.