reports
- Nadège Tillier
European utilities/Dry 2019 to be followed by a flood of supply
2019 will be one of the lowest years of bond supply in Euro for the IG utilities sector. As of today, there is almost nothing left to refinance this year. We would expect EUR bond issuance from Utilities to reach c.€29bn in 2019 (excluding potential US names) vs €34bn in 2018 and €44bn in 2017. The coming years offer a different picture though. From 2020 onwards, higher redemptions and capital expenditure should result in an abundance of bond supply. Redemptions will steadily pick up in th...
- Nadège Tillier
Italian utilities/We still see room for tightening
Moody's downgrade of the Italian sovereign's issuer rating to Baa3 on Friday evening led to some relief. On Monday, Italian credits reacted positively but valuation shows they still trade between low BBB and high yield territory. Based on company fundamentals and credit ratings we think that downgrades to junk are light years away and that there is still room for spread tightening.
Honeywell International Inc. (NYSE: HON) completes Spin-off of its Tra...
On October 1st, 218, Honeywood International Inc. completed the spin-off of its transportation systems business into a separate company, Garrett Motion Inc. The spin-off was tax-free and and announced on October 10th, 2017. The spin-off is in line with management's strategy of shedding non-core businesses. HON expects organic sales growth rate, better segment margin profile and improved cash conversion after the restructuring. We continue to believe the main trigger for the stock will be manag...
- Hendrik Wiersma
- Jeroen van den Broek
- Job Veenendaal
- Nadège Tillier
Coffee, Croissants & Credit/KPN, Telefónica, Orange, Suez, Terna and ...
KPN (KPN) reported solid 2Q18 numbers this morning. Total adjusted sales declined 1.5% to €1.4bn, or +0.5% when excluding the negative effect from regulation. Adjusted EBITDA climbed 1.3% to €577m. Ignoring the regulatory drag, the adjusted EBITDA result would have been 2.3% higher. Overall, we view this report card a supportive to spreads. (For full Story, please download report)
- Nadège Tillier
Terna/1H18 results no surprise, waiting for regulatory review/STABLE
Terna reported in line 1H18 results with revenue and EBITDA up 3%, to €1,080m and €815m respectively. The increase was mainly supported by non-regulated activities with an EBITDA at €27m. The group's capex reached €338m (€326m in 1H17), among which €291m were dedicated to regulated activities. Net debt was stable at €7.9bn (€7.8bn in 1H17) with 72% of it being bonds and 27% European Investment Bank (EIB)'s loans. We calculate FFO at c.1,130m for the last twelve months (LTM) and a...
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