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* Centrica plc Rating: A2/A

* KommuneKredit Rating: Aaa/AAA

British American Tobacco (BAT) stands to benefit from the positive tone in the tobacco sector when it launches a dual tranche transaction that will be lead managed by ABN Amro and Morgan Stanley. The A2/A rated offering, which is expected to comprise a Eu500m five year piece at around 95bp over mid-swaps and a £200m seven year tranche at 160bp over Gilts, equivalent to Libor plus 110bp, should appeal to investors, who in the wake of the attacks in the US on September 11 have shunned all but the most defensive sectors. A roadshow was underway this week.

Bookrunners Barclays, Dresdner Kleinwort Wasserstein and Bank of America are in the advanced stages of putting together an underwriting group for the £850m loan for telecoms business Energis. The loan is expected to carry a margin of around 175bp.

Globals * Household Finance Corp

US dollar took just over 20% of the market with 14 trades, including a $500 million four-year syndicated note from Europaische Hypothekenbank der Deutsche, lead-managed by Barclays Capital, Merrill Lynch and SG. Westpac Banking Corp also issued in the mid-term. It closed a $5 million capped FRN. The trade goes out five years and was managed by Mitsubishi Trust. The interest rate is linked to 6m $Libor +36bp and is capped at 6.800%. At the short end Unibanco - Uniao de Bancos Brasileiros issued a six-month trade for $2.50 million, due to be settled on October 17. And Dresdner Bank closed a $2.75 million one-year trade due on October 24. Freddie Mac issued a $50 million trade that goes out to 2016 - its longest-dated trade to be announced in over a month. And BNP Paribas and HypeVereinsbank both went out 10 years with $5 million and $10 million notes respectively.

There was a surge in US dollar, with $867.18 million raised off 34 trades. More interest was seen in the short end, with six trades closed under three months. These came mainly from HSBC Bank USA, which has returned to the short end after an absence of several weeks. Another issuer in the three-month bracket was Pacific Dunlop, the Australian rubber company, with a $20.92 million trade. Landesbank Baden-Wurttemburg closed a $20 million trade in the five-year sector. The note is non-call-six-months and has just one call option. It was a reverse enquiry trade that pays a fixed rate of 3.5% and Credit Suisse First Boston was the bookrunner. Royal Bank of Scotland closed two dollar notes. One is a self-led note for $10 million. It is non-call-two and is floating rate linked to 6m $Libor +91bp for the first two years. After that is pays a fixed rate of 7% annually. The borrower also closed a lower tier two capital issue via Morgan Stanley off its Euro-MTN programme. The coupon pays a fixed rate plus a variation linked to the volatility of the dollar swap rate. The note is listed in Luxembourg, and the investor is one US investment manager.

US dollar raised $1,126 million off 18 trades yesterday. Short-dated notes have been coming back. HSBC Bank and Deutsche Bank both issued three-month notes, the shortest that have been seen in a week. HSBC Bank's $3.01 million note pays a final coupon of 11.050% and Deutsche Bank's trade for $10 million pays a single coupon of 3.500%. DaimlerChrysler Japan Holding went out two months longer with a $20 million five-month trade. And this was not the only auto borrower in the market. VW International Finance closed a $63 million three-year note via Mizuho. The payment date is October 29 and the note is a standard Euro-MTN documentation and associated Uridashi offering in Japan. The coupon of 3.43% is paid semi-annually in arrears and is unlisted. Spintab closed a $100 million one-year trade via WestLB. The note is plain vanilla and pays a quarterly coupon linked to $Libor flat. The issuer has also closed a $13 million one-year trade via Goldman Sachs, announced today. It pays a fixed coupon of 2.5% annually. The note is due to be settled on October 22. At the longer end with 10-year notes were Societe Generale, Abbey National Treasury Services and ABN Amro Bank, with $220 million, $5 million and $10 million notes respectively.

* Australia & New Zealand Banking Group Ltd Rating: Aa3/AA-/AA-

In a week governed by negative credit events, flight to quality was more evident than at any time since September 11. Standard & Poor's (S&P) downgrading of Ford and GMAC into triple-B territory sent auto spreads reeling and had an adverse affect on the whole triple-B sector. A massive profit warning by UK media firm Pearson caused its bonds to widen by over 40bp and created jitters in the credit market generally. The announcement of a $3bn minimum GlobLS transaction for Ford so soon after the downgrade and after reporting a third quarter operating loss of $502m took the market by surprise. The two tranche deal, targeting January 2007 and 30 year maturities, will be priced imminently by lead managers Bear Stearns, Credit Suisse First Boston and Salomon Smith Barney (SSB). Price guidance on the five year tranche is 275bp-285bp, representing a new issue premium of 20bp over outstanding bonds. The 30 year is expected to be priced at 275bp to 280bp over.

Belgium The Eu300m four year term loan for Cofinimmo has been signed by sole mandated arranger SG. The loan was closed slightly oversubscribed but was not increased.