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Exact(4)
It's an investment grade company flush with assets that will generate an estimated $7 billion in cash flow in 2011 after dividends, according to Moody's Investors Service.
The transaction would depress Exelon's credit rating but it would remain investment grade, company executives said, and would return within two or three years to its current level.
"However, ITV is no longer rated as an investment grade company from a credit ratings standpoint [and] for a company which is the largest commercial television channel in the UK to be sub-investment grade says a lot".
Vivendi reckons the new credit line an nounced yesterday coupled with the cash from merging Universal Entertainment with NBC will give it the financial flexibility of an investment grade company - though it may have to wait a little for the rating agencies to make such status official.
Similar(55)
"We are seeing more volatility in the creditworthiness of investment- grade companies," Mr. Griep said.
High-yield bond funds invest in sub-investment grade companies – many of which are offering hefty double-digit yields.
In many cases, multinationals (investment grade companies) offer dividend yields that are higher than their corporate bond yields.
As demand for new corporate bonds has outstripped supply, many investors are now looking to buy debt from noninvestment grade companies in the so-called high yield market.
"Coming out of left field, a number of investment grade companies like Xerox, J. C. Penney and Laidlaw fell off a cliff, going straight from investment grade to distressed," said Martin S. Fridson, chief high-yield strategist at Merrill Lynch.
So peak figures for new issuance coincide with the top of the market; think of all the dotcom companies that floated in 1999.So it is perversely encouraging that investment grade companies have raised $300 billion on the corporate bond market this year.
In the late 70s he opened up the bond market to "noninvestment grade" companies that issued bonds that because of their issuers' tenuous creditworthiness came to be denoted "junk".
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