Search results for

Moody's and Standard & Poor's (S&P) came under the spotlight on Monday for their differing stances on Allied Domecq, after the UK wine and spirits company successfully won a majority stake in New Zealand winemaker Montana Group. Moody's affirmed Allied's A3 rating and took it off review for possible downgrade, while S&P cut the company from A- to BBB+ and assigned a negative outlook. Allied now carries a split rating. However, analysts were not surprised by the situation.

* After reorganising its research along global sector lines, ABN Amro has created the post of deputy global head of research to work under global research head Tina Beattie. Stewart Callaghan will take up the position as deputy in November after handing over the reins of his current position, head of Asian research, to Michael Baptista.

Estonia Fitch has upgraded the Republic of Estonia to A- from BBB+. The move follows a similar upgrade from Moody's a week earlier. Standard & Poor's is also expected to upgrade the sovereign to a single-A in time for its Eu100m five year debut Eurobond via Credit Suisse First Boston, expected by October.

* Deutsche Bahn Finance BV Guarantor: Deutsche Bahn AG

Seventeen trades were closed in sterling, Hong Kong dollar, Australian dollar, Swiss franc and Danish krone yesterday. Australian dollar has been absent for more than a week, but was back with a three-month A$10 million ($5.22 million) note from HSBC Investment Bank and a A$25 million five year trade from Helaba that pays a final coupon of 5.5%. Commerzbank International and Svensk Exportkredit (SEK) were in Swiss franc and Danish krone respectively. The Sfr36 million ($21.11 million) matures in 2004 and is due on September 17, while SEK's Dkr400 million ($47.79 million) syndicated trade was lead managed by Fortis Bank and KBC International. It goes out to 2009 and pays a final coupon of 5.375%. Bank of Scotland Treasury Services, UBS and 3i Group issued sterling notes with maturities between one and three years. And Hong Kong dollar was busy - 10 trades were closed and eight mature in less than three months.

French car maker Peugeot took the euro corporate sector by storm yesterday (Thursday) with a Eu1.5bn 10 year bond, capitalising on its rarity value, strong business credentials and a timely removal of its negative rating outlook by Standard & Poor's. Leads ABN Amro, Credit Suisse First Boston (CSFB), HSBC and JP Morgan were faced with a book of over Eu5bn for the Eu1.5bn deal despite pricing that, compared with its US peers, looked prohibitively tight.

* Bayerische Hypo- und Vereinsbank AG Rating: Aaa/AAA

Finland Although pricing for the Eu2bn acquisition financing for UPM-Kymmene has not been released, EuroWeek understands that the fees for a top ticket will be around 20bp-25bp.

Two telecoms companies this week demonstrated the value of bookbuilding behind closed doors in the face of a sceptical market. The two companies - MM02 (BT Wireless) and Liberty Media - both suffering from the negative sentiment and tightening liquidity of the telecom finance sector, are set to announce large and committed bank lines within the next few days.

Market report Compiled by Richard Favis, RBC DS

* Bradford & Bingley plc Rating: A1/A+

Vattenfall, Sweden's state owned energy company, has completed roadshowing a Eu500m plus bond that looks set to kick off brisk supply from the utility sector over the coming month, which could benefit from investors' appetite for non-cyclical credits. The utility is planning a long seven year issue set to mature in early 2009. The price talk at 80bp-83bp over mid-swaps is wider than expected, but still considered too expensive by some bankers.