{"id":17132,"date":"2011-11-26T01:18:43","date_gmt":"2011-11-26T05:18:43","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=17132"},"modified":"2011-11-26T01:18:43","modified_gmt":"2011-11-26T05:18:43","slug":"november-25-2011","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=17132","title":{"rendered":"November 25, 2011"},"content":{"rendered":"

In today’s cheerful European news, Italy got whacked at a bill auction<\/a>:<\/p>\n

Italy had to pay almost 7 percent to sell six-month bills at an auction today, fanning investor concern that the world\u2019s fourth-biggest borrower may struggle to finance its debt. The euro fell to a seven-week low.<\/p>\n

The Italian Treasury paid 6.504 percent to auction 8 billion euros ($10.6 billion) of the debt, almost twice the 3.535 percent a month ago and the highest since August 1997. Italy\u2019s two-year bonds yielded a euro-era record 7.83 percent, almost 50 basis points more than 10-year notes.<\/p>\n

The euro extended declines, shedding 0.9 percent to $1.3213, the lowest since Oct. 3. Italy\u2019s FTSE MIB index was the biggest decliner among European benchmarks, shedding 1.3 percent at 3 p.m. in Rome. Banks tumbled with Banca Monte Paschi di Siena SpA (BMPS) dropping 3.9 percent.<\/p><\/blockquote>\n

S&P downgraded Belgium to AA<\/a>:<\/p>\n

Belgium\u2019s credit rating was cut one step to AA by Standard & Poor\u2019s, which said bank guarantees, lack of policy consensus and slowing growth will make it difficult to reduce the euro region\u2019s fifth-highest debt load.<\/p>\n

The rating was lowered from AA+, with a negative outlook, London-based S&P said yesterday in a statement. The action by S&P is the first downgrade for Belgium in almost 13 years and puts its credit ranking on a par with the S&P local-currency ratings of the Czech Republic, Kuwait and Chile.<\/p>\n

Belgium\u2019s borrowing costs have surged to the highest level in 11 years in the past two months after the nation\u2019s government agreed to buy Dexia SA\u2019s Belgian bank unit and guarantee part of the crisis-hit lender\u2019s liabilities for 10 years. Investors continued a selloff in Belgian bonds after six-party coalition talks ran aground this week as Liberals and Socialists clashed over how to cut the budget deficit.<\/p><\/blockquote>\n

TransCanada Corporation and its subsidiary TransCanada Pipelines Ltd., issuers of TRP.PR.A, TRP.PR.B, TRP.PR.C, TCA.PR.X and TCA.PR.Y were confirmed at Pfd-2(low) by DBRS<\/a>:<\/p>\n

DBRS has confirmed the ratings of TransCanada PipeLines Limited (TCPL or the Company) as listed below. DBRS has also confirmed the rating of the Preferred Shares of TransCanada Corporation (TCC) at Pfd-2 (low). The rating of TCC, which owns 100% of TCPL and holds no other material assets, is based on the credit strength of TCPL.
…<\/b>
The confirmation reflects the Company\u2019s continued predictable cash flow from its regulated pipelines, which accounted for over 70% of consolidated EBITDA (for the first nine months (9M) of 2011). Pipeline EBITDA is supported by stable earnings that are mostly on a cost-of-service basis and\/or contracted, and by incremental earnings contributed by newly constructed pipelines The remaining 30% of EBITDA is mostly contributed by power generation assets (60% in Canada and 40% in the United States). Although EBITDA from power generation is less predictable than the pipeline business, a sizable share of the power output is protected by long-term contracts with creditworthy parties.
…<\/b>
Capex over the next two years (excluding the Keystone XL project) is likely to be much lower than the $3.6 billion level of the 12 months ending September 30, 2011. DBRS expects free cash flow to be relatively neutral until the significant capex on Keystone XL or another large project is well underway. As a result, debt levels are expected to remain stable or decrease slightly over the medium term. Combined with higher cash flow expected from newly completed pipeline projects, DBRS expects TCPL\u2019s credit metrics to improve modestly and remain well within the current rating category.<\/p><\/blockquote>\n

EMA.PR.A was confirmed at Pfd-3(high) by DBRS<\/a>:<\/p>\n

DBRS has today confirmed the Medium-Term Notes and Preferred Shares \u2013 Cumulative ratings of Emera Inc. (Emera or the Company) at BBB (high) and Pfd-3 (high), respectively, with Stable trends, based on the strong earnings and cash flows generated by its regulated operations and on Emera\u2019s, reasonable non-consolidated financial profile. The ratings also reflect increasing diversification through the ownership of regulated utilities in different jurisdictions, which reduces dependence on earnings and cash flows from any one entity and reduces volatility of earnings. However, Nova Scotia Power Inc. (NSPI) continues to account for the majority (approximately 70%) of Emera\u2019s consolidated EBIT.<\/p><\/blockquote>\n

NSI.PR.D was confirmed at Pfd-2(low) by DBRS<\/a>:<\/p>\n

DBRS has today confirmed the ratings of the Unsecured Debentures & Medium-Term Notes, Commercial Paper and Cumulative Preferred Shares of Nova Scotia Power Inc. (NSPI or the Company) at A (low), R-1 (low) and Pfd-2 (low), respectively, all with Stable trends. The ratings reflect stable and predictable regulated cash flows generated by the Company\u2019s regulated monopolistic operations, diverse customer base and a supportive regulatory environment.<\/p><\/blockquote>\n

INE.PR.A was confirmed at Pfd-3(low) by DBRS<\/a>:<\/p>\n

DBRS has today confirmed the Issuer Rating of BBB (low) and the Preferred Shares rating of Pfd-3 (low) of Innergex Renewable Energy Inc. (Innergex or the Company). Both ratings have Stable trends. The ratings reflect the strength of the Company\u2019s high-quality, low-cost renewable power generating assets, operating under long-term off-take contracts with highly-rated counterparties, and its consistent execution in developing and constructing new generating assets.
…<\/b>
Consolidated credit metrics are expected to remain weak for the rating category through the medium term, with EBITDA-to-interest in the 2.3 times (x) to 2.5x range and cash flow-to-debt in the 5% to 8% range. DBRS expects future modest improvement in coverage metrics as assets under construction are completed and enter service. Consolidated debt-to-capital, currently 63%, is expected to increase modestly over the next several years and peak in 2013 to 2014 until new construction assets begin to operate. Most of the consolidated debt (82%) is project-level debt and non-recourse to the Company.
…<\/b>
Business risk factors are low for the rating category. Innergex\u2019s competitive position, asset composition and contractual position are all strong for the BBB (low) rating. Asset diversification and operational expertise also support the investment-grade quality assessment. In addition, the focus on renewable assets minimizes exposure to environmental regulation and is positive for the rating. The Company\u2019s low business risk profile mitigates weaker financial credit metrics. Renewable resources are variable, reducing energy production stability and related cash flows. However, this risk is mainly offset by the geographic diversity of the generating portfolio. Also, the Company has cash-funded reserves at the project level (typically six months of debt service) to smooth variability in cash flows from wind\/hydrology resources.<\/p><\/blockquote>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices<\/strong>
Values are provisional and are finalized monthly<\/td>\n<\/tr>\n
Index<\/td>\nMean
Current
Yield
(at bid)<\/td>\n		Median
YTW<\/td>\n		Median
Average
Trading
Value<\/td>\n		Median
Mod Dur
(YTW)<\/td>\n		Issues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-1.2862 %<\/td>\n2,103.6<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.83 %<\/td>\n4.55 %<\/td>\n28,554<\/td>\n17.19<\/td>\n1<\/td>\n-0.7576 %<\/td>\n3,187.5<\/td>\n<\/tr>\n
Floater<\/td>\n3.42 %<\/td>\n3.44 %<\/td>\n153,962<\/td>\n18.60<\/td>\n2<\/td>\n-1.2862 %<\/td>\n2,271.4<\/td>\n<\/tr>\n
OpRet<\/td>\n4.96 %<\/td>\n3.06 %<\/td>\n51,452<\/td>\n1.47<\/td>\n7<\/td>\n0.1376 %<\/td>\n2,479.2<\/td>\n<\/tr>\n
SplitShare<\/td>\n5.80 %<\/td>\n6.48 %<\/td>\n56,945<\/td>\n5.16<\/td>\n3<\/td>\n0.1696 %<\/td>\n2,529.6<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.1376 %<\/td>\n2,267.0<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.59 %<\/td>\n3.15 %<\/td>\n98,283<\/td>\n0.27<\/td>\n13<\/td>\n-0.0572 %<\/td>\n2,148.7<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.31 %<\/td>\n5.19 %<\/td>\n105,139<\/td>\n14.68<\/td>\n17<\/td>\n0.0775 %<\/td>\n2,293.5<\/td>\n<\/tr>\n
FixedReset<\/td>\n5.11 %<\/td>\n3.02 %<\/td>\n217,792<\/td>\n2.47<\/td>\n64<\/td>\n-0.0718 %<\/td>\n2,342.0<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.05 %<\/td>\n4.40 %<\/td>\n199,515<\/td>\n3.85<\/td>\n46<\/td>\n-0.0262 %<\/td>\n2,215.7<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
IAG.PR.F<\/td>\nDeemed-Retractible<\/td>\n-1.92 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2019-03-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.50
\nBid-YTW : 5.51 %<\/td>\n<\/tr>\n
BAM.PR.K<\/td>\nFloater<\/td>\n-1.67 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-25
\nMaturity Price : 15.29
\nEvaluated at bid price : 15.29
\nBid-YTW : 3.47 %<\/td>\n<\/tr>\n
RY.PR.R<\/td>\nFixedReset<\/td>\n-1.66 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.65
\nBid-YTW : 3.22 %<\/td>\n<\/tr>\n
CM.PR.P<\/td>\nDeemed-Retractible<\/td>\n-1.23 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-10-29
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.61
\nBid-YTW : 3.23 %<\/td>\n<\/tr>\n
TD.PR.P<\/td>\nDeemed-Retractible<\/td>\n-1.21 %<\/td>\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-11-01
\nMaturity Price : 25.50
\nEvaluated at bid price : 26.13
\nBid-YTW : 4.39 %<\/td>\n<\/tr>\n
GWO.PR.N<\/td>\nFixedReset<\/td>\n-1.03 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.10
\nBid-YTW : 3.59 %<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nShares
Traded<\/td>\n		Notes<\/td>\n<\/tr>\n
ENB.PR.D<\/td>\nFixedReset<\/td>\n122,050<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-25
\nMaturity Price : 23.13
\nEvaluated at bid price : 25.10
\nBid-YTW : 3.67 %<\/td>\n<\/tr>\n
TD.PR.K<\/td>\nFixedReset<\/td>\n38,630<\/td>\nRBC crossed 30,000 at 27.44.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-07-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 27.42
\nBid-YTW : 2.67 %<\/td>\n<\/tr>\n
CM.PR.E<\/td>\nPerpetual-Discount<\/td>\n32,581<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-25
\nMaturity Price : 24.70
\nEvaluated at bid price : 25.00
\nBid-YTW : 5.65 %<\/td>\n<\/tr>\n
CM.PR.G<\/td>\nPerpetual-Discount<\/td>\n27,615<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-25
\nMaturity Price : 24.58
\nEvaluated at bid price : 24.91
\nBid-YTW : 5.46 %<\/td>\n<\/tr>\n
ENB.PR.B<\/td>\nFixedReset<\/td>\n21,897<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-25
\nMaturity Price : 23.26
\nEvaluated at bid price : 25.41
\nBid-YTW : 3.65 %<\/td>\n<\/tr>\n
BNS.PR.Z<\/td>\nFixedReset<\/td>\n21,893<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2022-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 24.96
\nBid-YTW : 3.20 %<\/td>\n<\/tr>\n
There were 21 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n
Wide Spread Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nQuote Data and Yield Notes<\/td>\n<\/tr>\n
RY.PR.R<\/td>\nFixedReset<\/td>\nQuote: 26.65 – 27.10
\nSpot Rate : 0.4500
\nAverage : 0.2711<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-02-24
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.65
\nBid-YTW : 3.22 %<\/td>\n<\/tr>\n

CM.PR.P<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.61 – 26.14
\nSpot Rate : 0.5300
\nAverage : 0.3621<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2012-10-29
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.61
\nBid-YTW : 3.23 %<\/td>\n<\/tr>\n

BMO.PR.L<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.93 – 27.20
\nSpot Rate : 0.2700
\nAverage : 0.1760<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2013-05-25
\nMaturity Price : 26.00
\nEvaluated at bid price : 26.93
\nBid-YTW : 3.12 %<\/td>\n<\/tr>\n

TD.PR.P<\/td>\nDeemed-Retractible<\/td>\nQuote: 26.13 – 26.39
\nSpot Rate : 0.2600
\nAverage : 0.1717<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-11-01
\nMaturity Price : 25.50
\nEvaluated at bid price : 26.13
\nBid-YTW : 4.39 %<\/td>\n<\/tr>\n

BAM.PR.K<\/td>\nFloater<\/td>\nQuote: 15.29 – 15.52
\nSpot Rate : 0.2300
\nAverage : 0.1658<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-25
\nMaturity Price : 15.29
\nEvaluated at bid price : 15.29
\nBid-YTW : 3.47 %<\/td>\n<\/tr>\n

POW.PR.A<\/td>\nPerpetual-Discount<\/td>\nQuote: 25.11 – 25.41
\nSpot Rate : 0.3000
\nAverage : 0.2372<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2041-11-25
\nMaturity Price : 24.88
\nEvaluated at bid price : 25.11
\nBid-YTW : 5.65 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

In today’s cheerful European news, Italy got whacked at a bill auction: Italy had to pay almost 7 percent to sell six-month bills at an auction today, fanning investor concern that the world\u2019s fourth-biggest borrower …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-17132","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/17132","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17132"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/17132\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17132"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17132"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}