CreditSights

AES Corporation #Q## Tearsheet AES survived the post-Enron crunch when others in the space were forced to file for bankruptcy.AES' leverage remains very high.AES is highly exposed to emerging markets risk, particularly in Latin America,...

Edison International #Q## Tearsheet EIX is a stable credit with stronger metrics than our investment grade average.EIX returned to financial health after the ####-#### California Power Crisis.With a major capex program proposed for...

Research Overview: As of December # A summary of trading views from our research of the latest week. Focus on Alcatel-Lucent, Allegheny Energy, BHP Billiton & Rio Tinto, Campbell Soup, CenterPoint Energy, Centrica, CRH, Deere, European...

TXU (Energy Future Holdings Corp.) #Q## Tearsheet TXU, as expected, was downgraded post the LBO closing.Metrics have declined due to the heavy debt load of the LBO.The ##% stake in Oncor was sold to a subsidiary of a Canadian pension...

US Spreads: Week Ended November ##, #### Even after last week's massive sell-off high grade bond spreads were not able to stabilize and the OAS on the Merrill Lynch US Corporate Master index pushed out by a further # bp over the last...

IPG #Q## Tearsheet Interpublic was a study in poorly integrated acquisitions but has made progress since its near-death experience and change of management.Above all, keeping plenty of cash on hand allowed IPG to work through financial...

Comcast Corp #Q## Tearsheet Comcast has a solid business profile and good growth opportunities.The group's focus is on organic growth and small acquisitions as large cable buys would face regulatory bars.Content suppliers are opening...

R.H. Donnelley #Q## Tearsheet RHD has a high-margin business model with solid cash flows, but its predictability is in question.RHD recommitted to paying down debt when equity investors exited the stock en masse. RHD risk premiums are...

Dominion Resources #Q## Tearsheet D is a stable credit, with some commodity risk.D has greatly reduced its risk profile by selling off a majority of its E&P assets.D has used some sale proceeds to buy back debt, with a goal of a strong...

Progress Energy #Q## Tearsheet After selling non-core assets and reducing debt, PGN is now investing in its regulated utilities.Management exceeded the $#.# billion debt reduction plan, using $#.# billion in proceeds from selling non-core...

PNC #Q## Tearsheet PNC's (A#/A+) ratings trends are negative based on the announcement of its acquisition of National City. We sense that downside ratings risk is likely limited to one notch.Nat City will likely lead to weaker asset...

Deutsche Telekom #Q## Tearsheet DT is now better positioned as a high triple B as shareholder demands, tough domestic conditions and pursuit of profitable growth opportunities are met with a more aggressive strategy and financial policy.Further...

FinMovers: Life Insurance RBC Stress Test Global financial services rebounded strongly from the prior week with increases in the U.S. and Europe #Y/##Y UST yields fell as #s/##s spread narrowed to +### bps We have updated our estimated...

CDX & iTraxx Spreads: Week Ended Nov ##, #### Spreads on the CDS indices mostly tightened last week with the broad investment grade indices performing best. Spreads on the CDX IG index tightened ##.# bp to ###.# bp. The iTraxx Europe...

Telecom & Suppliers Monthly Summary: December #### We review key themes published November. We update the relative value of CDS in the telecom carrier and technology spaces. We summarize our views on companies within our coverage....

RRI: Cancels $#B FR/GS Financing; Maintain U/W on Bonds RRI said it will no longer proceed with its previous $# billion financing that consisted of a $### million convertible deal and $### million secured credit facility Management...

Euro Financial Movers: Thanks Given It was a surprisingly positive week despite continuing economic gloom and the US Thanksgiving holiday - but is it a sign of stabilisation or a bear market rally? Government intervention in Citigroup...

Stress Case Life Insurance RBC Loss Analysis We have updated our estimated stress case realized loss estimates on the primary insurance subsidiary's of the major names in our life coverage universe. We then applied our stress case...

Euro Utilities: Issuance Update In the last two weeks the Euro utilities have issued close to another €# billion of debt, bringing the total over the last six weeks to almost €##.# billion. We still have not seen Nat Grid...

CountryScore November ####: The Crisis Grows CountryScore risk is again at a record high showing that the crisis in EM is not abating. Pakistan received a $#.# billion aid package just as it was close to running out of foreign reserves...

Auto Bailout: Which Side of the Wishbone? The next two weeks will hold a lot of excitement for those with auto exposure as the ugly cash flow picture gets revisited in hearings, the Detroit # management gets their feet held to the fire...

Exelon #Q## Tearsheet Exelon is a solid credit, but has been downgraded and watchlisted pending the possible purchase of NRG. EXC has said it will maintain investment grade ratings at all levels, and plans to get back to pre-NRG ratings...

Entergy Corporation #Q## Tearsheet ETR announced the spin-off of its non-utility nuclear business, but that spin is by no means certain.While the New Orleans bankruptcy did not seriously affect ETR, its exit from Ch. ## is a positive.The...

CenterPoint Energy #Q## Tearsheet CNP is on track to be a solid BBB company with a low credit risk profile.CNP will likely be allowed to securitize Hurricane Ike costs.Although CNP is still highly leveraged for a BBB company, the company...

FPL Group #Q## Tearsheet FPL is getting less recovery than expected from storms. Most metrics are better than the average and free cash flow continues to be positive.FPL and its subsidiaries were removed from watch for possible downgrade...