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Credit Ratings - changes
#1
Credit Ratings seem to be a common screen for quality among DGI followers.

Recently I found changes ratings, by accident, when I copied a list of data from Fastgraphs to my spreadsheet to my list of candidates. Today I found QCOM downgraded. I didnt find such information on SA nor did I get messages from their system. Also I do not know how to subcribe at S&P for a watchlist. 

agency, date, ticker, new CR, outlook, action

S&P, 03/23/17, WGL, A, negative, down from A+

S&P, 04/26/17, PEP, A+, stable, up from A

S&P, 05/02/17, SHW, BBB, stable, down from A
S&P, 05/03/17, DIS, A+, stable, up from A
S&P, 05/16/17, QCOM, A, stable, down from A+
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#2
ATCO.TO and CU.TO, A-, down from A
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#3
McCormick, MKC, S&P 08/09/17, BBB stable, down from A-
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#4
(08-24-2017, 06:08 AM)Forticus Wrote: McCormick, MKC, S&P 08/09/17, BBB stable, down from A-

Knocked down a few notches after their acquisition?
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#5
CAH, S&P 08/11/17, BBB+ stable, down from A-

Quote from https://www.standardandpoors.com/
" ... We lowered the corporate credit rating on Cardinal following its acquisition
of Medtronic's Patient Care, Deep Vein Thrombosis and Nutritional
Insufficiency business because the transaction meaningfully raised leverage.
However, the rating also reflects our expectation that over the next few
years, the company will gradually lower leverage through debt repayment, cash
flow generation, and some EBITDA growth. ... "

(08-24-2017, 08:31 AM)EricL Wrote:
(08-24-2017, 06:08 AM)Forticus Wrote: McCormick, MKC, S&P 08/09/17, BBB stable, down from A-

Knocked down a few notches after their acquisition?

As far as I understand S&P's release, the aquisition size and increased leverage are beyond MKC's previous conservative limits.

"... The downgrade reflects our expectation that McCormick's purchase of RB Foods
for $4.2 billion will close as expected, resulting in a substantial increase
in debt leverage. Although the company has a history of making bolt-on
acquisitions, the proposed RB Foods acquisition is the largest in the
company's history and will result in debt leverage of about 5x, well above the
company's historical level of 2x or below. The increase in debt leverage is a
departure from the company's historically conservative financial policies. ..."
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