{"id":835,"date":"2007-05-07T17:25:38","date_gmt":"2007-05-07T21:25:38","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=835"},"modified":"2007-05-07T17:25:38","modified_gmt":"2007-05-07T21:25:38","slug":"alpre-alprf-placed-under-review-developing-by-dbrs","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=835","title":{"rendered":"AL.PR.E &amp; AL.PR.F Placed &quot;Under Review &#8211; Developing&quot; by DBRS"},"content":{"rendered":"<p>In response to <a href=\"http:\/\/edition.cnn.com\/2007\/BUSINESS\/05\/07\/alcoa.alcan.reut\/index.html\">Alcoa&#8217;s hostile bid for Alcan<\/a>, <a href=\"http:\/\/www.dbrs.com\">DBRS<\/a> has<\/p>\n<blockquote><p>placed the ratings of Alcan Inc. (Alcan or the Company) Under Review with Developing Implications &#8230; However, the financial profile of New Alcoa would be much more aggressive relative to that of stand-alone Alcan, given the debt incurred to finance the proposed acquisition. DBRS notes that Alcoa\u2019s offer has an allocation of 20% stock and 80% cash. Accordingly, New Alcoa\u2019s pro forma leverage (gross debt-to-capital) would be 64% versus 33% for stand-alone Alcan. Similarly, pro forma cash flow-to-total debt would be at 0.14 times for New Alcoa versus 0.56 times for stand-alone Alcan. DBRS notes that these financial metrics are very aggressive for the currently assigned ratings.<\/p>\n<p>DBRS will continue to monitor the proposed acquisition. In the event that this transaction is completed based on the current structure of Alcoa\u2019s offer, a downgrade in the ratings would likely result due to the aggressive financial profile. However, DBRS notes that the ratings in all likelihood would remain investment grade.<\/p><\/blockquote>\n<p>What with <a href=\"http:\/\/www.prefblog.com\/?p=766\">the BCE problem<\/a> and the <a href=\"http:\/\/www.prefblog.com\/?p=827\">TOC problem<\/a>, there soon won&#8217;t be any high quality\u00a0floating rate issues of any description! Then &#8230; perhaps &#8230; <a href=\"http:\/\/www.prefblog.com\/?p=761\">a fund creating high-quality synthetic floaters<\/a> will attract more attention!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In response to Alcoa&#8217;s hostile bid for Alcan, DBRS has placed the ratings of Alcan Inc. (Alcan or the Company) Under Review with Developing Implications &#8230; However, the financial profile of New Alcoa would be &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-835","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/835","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=835"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/835\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=835"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=835"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=835"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}