Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

Fitch Publishes Capital Structure and Covenant Analysis for 50 of Largest U.S. Leveraged Issuers



  Fitch Publishes Capital Structure and Covenant Analysis for 50 of Largest
  U.S. Leveraged Issuers

Business Wire

CHICAGO -- July 11, 2013

Link to Fitch Ratings' Report: Fitch 50 -- Structural Profiles of 50 Leveraged
U.S. Credits

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=712469

Fitch Ratings has published the third edition of its structure-focused report
profiling 50 of the largest U.S. leveraged names (the 'Fitch 50').

In conducting its analysis, Fitch observed the following trends:

--Robust Valuation Multiples: The average enterprise value/EBITDA market
multiple for the Fitch 50 is 11.1x, which exceeds the 8.4x average market
valuation multiple across all sectors. The relatively high average multiple
for the Fitch 50 group reflects the currently weak LTM cash flows of certain
members.

--Liquidity Sufficient: Forty-two (84%) of the issuers had total liquidity
(cash, short-term investments, and credit facility availability) that was
sufficient to cover maturities through 2015.

--Credit Metrics Run Gamut: Twenty-four companies operated with relatively
less leverage, as demonstrated by total LTM leverage ratios of less than 5.0x.
There were 13 issuers with a leverage ratio of more than 8.0x and five with an
interest coverage ratio of less than 1.0x. Twenty companies reported negative
FCF for the LTM period. However, the ability to refinance or repay obligations
at maturity will depend on future credit market conditions and FCF levels.

--Adequate Covenant Headroom: Covenant headroom remains adequate for most
issuers that have maintenance financial covenants. Twelve companies (24%) are
in a position in which an EBITDA decline of 20% or less would trip their
tightest covenant, and three had headroom of just 10%. Springing covenants
that become effective when facility availability drops below a minimum
threshold are becoming more prevalent as facilities are refinanced.

The 'Fitch 50' is a comprehensive report compiling organizational structure
diagrams and credit agreement/indenture summaries. It analyses key structural
features of the debt at the Fitch 50. The most relevant structural features of
interest include: the seniority of each debt instrument in the capital
structure; the attached collateral and guarantee package; the attendant
restrictive covenants (including carve-outs), such as limitations on debt
incurrence, liens, asset sales, and restricted payments; and cross-default and
other notable provisions.

The full report 'Fitch 50' is available at
www.fitchratings.com/sectors/Corporate Finance/Leveraged Finance.

For more information, visit: 'www.fitchratings.com/usleveragedfinance'.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

Fitch 50 Europe - July 2013 (July 2013)

Fitch Telecom & Cable Company Handbook (A Detailed Review of Companies in the
U.S. and Canada Telecom and Cable Sector) (June 2013)

H.J. Heinz Company (June 2013)

Hospitals Credit Diagnosis (Implications of the ACA Slowly Taking Shape) (June
2013)

SUPERVALU Inc. (June 2013)

U.S. Leveraged Finance Multiple EV-aluator (May 2013)

Leveraged Finance Annual Manual for the Americas (April 2013)

Specialty Pharmaceuticals Snapshot - Key High Yield Consolidator Trends and
Targets (April 2013)

Technology Handbook (April 2013)

U.S. Leveraged Finance Stats Quarterly - Fourth-Quarter 2012 (April 2013)

High-Yield Healthcare Checkup: Comprehensive Analysis of High-Yield U.S.
Healthcare Companies (January 2013)

U.S. Leveraged Finance Spotlight Series Community Health Systems, Inc.
(October 2012)

Applicable Criteria and Related Research:

Fitch 50 Europe - July 2013

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=712340

Fitch's Telecom & Cable Company Handbook (A Detailed Review of Companies in
the U.S. and Canada Telecom and Cable Sector)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=706487

H.J. Heinz Company

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=712141

Hospitals Credit Diagnosis (Implications of the ACA Slowly Taking Shape)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=704315

SUPERVALU Inc.

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708799

U.S. Leveraged Finance Multiple EV-aluator

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=707472

Leveraged Finance Annual Manual for the Americas

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=704760

Specialty Pharmaceuticals Snapshot - Key High Yield Consolidator Trends and
Targets

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=706298

Technology Handbook

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=705259

U.S. Leveraged Finance Stats Quarterly - Fourth-Quarter 2012

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=705355

High-Yield Healthcare Checkup: Comprehensive Analysis of High-Yield U.S.
Healthcare Companies

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=700377

U.S. Leveraged Finance Spotlight Series Community Health Systems, Inc.

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=687271

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS.
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK:
HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING
DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S
PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND
METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF
CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL,
COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM
THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER
PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS
OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN
EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER
ON THE FITCH WEBSITE.

Contact:

Fitch Ratings
Sharon Bonelli
Managing Director
+1-212-908-0581
Fitch Ratings, Inc.
1 State Street Plaza,
New York, NY 10004
or
Michael Simonton
Head of U.S. Leveraged Finance
+1-312-606-3138
or
Media Relations
Brian Bertsch
+1-212-908-0549
brian.bertsch@fitchratings.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement