Wednesday, June 10, 2009

The Only Company That Has Managed To Get An Upgrade From Junk To Investmentgrade Is........

Congratulations to Jeff Bezos....... The overall trend that the bondholders ( vs shareholders ) are the new masters will continue for quite a long time & news like this will pop up on a daily basis and "DILUTION" will finally have an effect on stock prices..... Questions from Wall Street Finest about the debt profile, maturities & the balance sheet quality in general were unheard of until 2008..... Up to early 2008 they still have asked how big the next buyback will be ( of course financed with newly issued debt , see "I Want My Buyback Back....")...........

Glückwunsch an Jeff Bezos....... Insgesamt bleibt festzuhalten das der Trend das die Anleihe und Kreditgeber den Kurs der Unternehmen bestimmen ( im Gegensatz wie in den letzten Jahren die Aktionäre ) noch auf Jahre hinaus intakt bleiben wird. Nachrichten wie diese werden zum Alltag gehören und irgendwann wird auch die "Verwässerung" einen Einfluß auf die momentan doch recht losgelösten Aktienkurse haben.......Und ich glaube kaum das Trends wie dieser ( siehe Europäer stürzen sich auf Ramschanleihen & Hochzinsanleihen: Zahlungsausfälle in Europa halten sich in Grenzen ) von Dauer sein werden...... Fragen in Unternehmenspräsentationen von Analystenseite zur Bilanzqualität ( Verschuldung, Fälligkeiten usw. ) habe ich persönlich bis zum Mitte 2008 nicht vernommen..... Bis dahin wurde stattdessen in schöner Regelmäßigkiet nach der Höhe des nächsten schuldenfinanzierten Aktienrückkaufes gefragt ( siehe "I Want My Buyback Back...." & Druckreifer Vergütungsirrsinn ) ........


Amazon.com: An Angel Among Us Deal Journal WSJ
Forty companies have been jettisoned from the ranks of investment-grade credits this year. Just four junk-rated companies have been promoted to investment grade.
The credit changes, tracked by Moody’s Investors Service, show just how much the economy has faltered. It also shows that even healthier high-yield credits will require a much more vigorous economic environment to achieve investment-grade status.

Indeed, three of the upgrades didn’t reflect better economic times, only that the companies had been acquired in mergers. That leaves just one company to receive an upgrade on its business fundamentals. That company is Amazon.com.
“Other than Amazon, what’s missing are upgrades stemming from enhanced fundamentals such as an improved outlook for sales and a widening of profit margins,” said John Lonski, manager director of Moody’s Credit Market Economics. “In an environment like this, acquisition is still the main driver for upgrades.”

Alltel Communications, First Allmerica Financials Life Insurance and Barr Laboratories were acquired by Verizon Communications’ Verizon Wireless arm, Commonwealth Annuity & Life and Teva Pharmaceuticals, respectively. As a result, their bond ratings were upgraded to investment-grade level.

In the most recent quarter, no companies have been upgraded. Moody’s records show the previous record low was two upgrades–in the second quarter of 2008.

Amazon’s second-quarter financial statements reflected “the company’s very strong balance sheet, healthy operating performance, and good liquidity,” according to Moody’s.

As the dollar value of acquired U.S. companies plunged 53% in 2008 and fell 35% for this year through May, Lonski predicted that the potential for more “rising star” upgrades through M&A will keep diminishing.

> Unfortunately i think "good" ( if you want to call the ratio 1:44 good.... ) news like this will be the exception.... Will be interesting to see if at least one media outlet will spin this as a sign that the green shoots are still here....... :-)

> Bin mir ziemlich sicher das solch "gute" ( wenn man das Verhältnis 1 zu 44 gut nennen möchte ) Nachrichten auch weiter die absolute Ausnahme bleiben werden....... Trotzdem nicht ganz auszuschließen das sich zumindest ein Medienvertreter findet der dies als Beleg für den absurden "Green Shoots" Wahn verwendet....... :-)

Labels: , , , , , ,

1 Comments:

Blogger jmf said...


Record Corporate Bond Sales Fail to Ease Cash Gap, Moody’s Says


For high-risk, high-yield companies the situation is worse, with as many as 20 percent failing to have sufficient cash to meet outflows, the New York-based ratings firm said in a report today.

Almost half of sub-investment grade borrowers are in danger of breaching terms of their debt agreements, the report said, with 17 percent of investment grade companies at peril.

4:58 AM  

Post a Comment

Links to this post:

Create a Link

<< Home