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FIIG Credit Research

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  • Mallinckrodt Plc 4Q18 Results

    Mar 19, 2019
    Mallinckrodt Plc’s results were broadly in line with market expectations. 4Q18 revenues of USD835m increased 5.6% on a constant currency basis, however declined 2.8%. when excluding acquisitions. 4Q18 adjusted EBITDA increased 10% to USD356m, compared to the prior corresponding period.
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  • Ovato Group (previously PMP) – Initiate recommendation of Market Perform

    Mar 15, 2019
    At the current price, we believe Ovato’s 8.25% November 2022 Notes offer fair relative value. While the Group has slightly revised down its FY19 guidance, it announced the closure of one of its plants and additional cost savings. The credit outlook is Stable, noting that establishing a track record of delivering the announced cost savings will be important in the future direction of our credit outlook.
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  • IMF Bentham Limited – Modest 1H19 Loss, underlying credit quality sound

    Mar 06, 2019
    IMF recently released their 1H19 results, with the company reporting an unaudited net loss after tax of AUD(10.4m). Despite the loss, we forecast IMF to report a material increase in key earnings metrics over the next few years. We have reiterated our Market Perform recommendation, with a Stable credit outlook.
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  • CML Group Ltd – Strong 1H19 Results, in line with guidance

    Mar 06, 2019
    CML recently released their 1H19 results, with the company reporting an unaudited net profit after tax of AUD4.4m, up 161% on the prior corresponding period. We have reiterated our Market Perform recommendation, with a Stable credit outlook.
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  • CenturyLink Inc - 4Q18 results

    Mar 04, 2019
    CenturyLink Inc. (CLINK) reported its 4Q18 results. Total pro forma revenue was slightly weaker at USD5.8bn (4Q17: USD6.0bn), however due to improved margins and realised synergies, adjusted EBITDA increased to USD2.2bn from USD2.0bn. EBITDA margins increased to 37.9% from 33.2%.
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  • Hertz Global Holdings - 4Q18 results

    Mar 04, 2019
    Hertz Global Holdings (Hertz) reported sound 4Q18 results supported by a strong pricing and residual environment. Total revenues were USD2.3bn, compared to USD2.1bn in 4Q17. Adjusted EBITDA was USD49m, compared to USD21m in the same period last year.
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  • Frontier Communications Corp - 4Q18 results

    Mar 04, 2019
    Frontier Communications (Frontier) released its 4Q18 results. Consolidated revenue totalled USD2.1bn in 4Q18 (down 4.2% YoY). While weak subscriber results continue to drag on the top line, 4Q18 marked the slowest YoY decline in quarterly revenues since the acquisition of the CTF assets.
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  • DirectBond Filter List March Update

    Mar 04, 2019
    The March 2019 update to our DirectBond List including new additions and our current Trading Restrictions list.
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  • Pioneer Credit – 1H19 results lower on increased costs. FY19 guidance reaffirmed

    Feb 28, 2019
    Pioneer Credit (PNC) reported 1H19 results, with net profit after tax down 33% on prior corresponding period due to increased employee and borrowing costs. EBITDA was unchanged. We believe PNC's credit quality remains solid, despite a weaker half-on-half performance, with the Company reaffirming guidance for FY19.
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  • Next Generation Clubs - We initiate a recommendation of Outperform

    Feb 26, 2019
    We believe the 7.90% 2023 Notes offer good relative value and have the potential for near term price appreciation at the current indicative mid-price AUD99.10 and a yield to worst of 8.23%. The outlook is Stable. Next Gen has provided management figures for the year to 31 December which were broadly in-line or stronger than expectations.
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  • Elanor Investors Group – Downgraded due to price action

    Feb 26, 2019
    We downgrade our recommendation on Elanor’s 7.10% notes due 2022 Underperform due to price appreciation. Our credit outlook remains Stable. The Group however continues to perform strongly, in line with expectations. Core earnings in 1H19 increased 42% to AUD7.31m compared to the prior period. This was primarily driven by the continued growth in funds under management from AUD1.082bn to AUD1.149bn over the half.
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  • Ausdrill (Barminco) - 1H19 Results

    Feb 26, 2019
    On 21 February 2019, diversified mining services company Ausdrill Limited reported strong financial results for the six months ended 31 December 2018, following the transformational acquisition of Barminco.
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  • Sunland 1H19 – results in line with expectations

    Feb 26, 2019
    While impacted by a non-cash write-down, the results were broadly in-line with expectations. We reiterate our Underperform recommendation on the 7.55% 2020 notes. Our credit outlook is Negative. While Sunland’s credit profile has improved significantly over the last 12 months, gearing will begin to increase as the next multistory projects are developed. Further the sector is facing headwinds evidenced by a reduction in the volume of property sales.
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  • Sydney Airport - FY18 Results

    Feb 25, 2019
    On 21 February 2019, Sydney Airport released its FY18 results which were in line with our expectations. Our recommendations on SYD’s 2020 notes and 2030 notes are unchanged.
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  • Axsesstoday update

    Feb 22, 2019
    Axsesstoday (AXL) announced its proposed capital raising has been placed on hold. If AXL does not resolve its total indebtedness breach by 28 February 2019, the previous waiver will no longer be valid and AXL will again be in breach of its indebtedness covenant. Unless AXL enters into voluntary administration, any outstanding default not waived would not, in and of itself, prevent it from paying interest when due.
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  • Eric Insurance 1H19 Results – Improving Earnings Quality, But Regulatory Uncertainty Remains a Risk

    Feb 22, 2019
    Eric Insurance reported a YTD 1H19 (31 December 2018) unaudited net profit after tax of AUD1.09m, up from a net loss of AUD0.90m in the prior corresponding period, and ahead of our expectations. While the underlying credit quality continues to improve, Eric Insurance (and the general insurance industry) remains heavily exposed to regulatory uncertainty.
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  • Transocean 4Q18 & FY18 Results February 2019

    Feb 22, 2019
    On 19 February 2019, global offshore contract drilling service provider Transocean Ltd, reported its 4Q18 and full year results.
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  • Virgin Australia - Upgrade February 2019

    Feb 22, 2019
    An update on Virgin Australia following a ratings upgrade on the unsecured notes.
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  • Negative headlines are stockpiling for Australian coal

    Feb 22, 2019
    Glencore’s decision to cap coal production and uncertainty around continued coal export to China have created concerns for the Australian coal sector but we don’t believe there’s any long-term risk to the main coal export terminals.
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  • Maurice Blackburn – Results in line with expectations

    Feb 19, 2019
    Maurice Blackburn (MB) reported 1H19 results which were in line with our expectations. We reiterate our Market Perform recommendation on MB’s 2022 notes. While we expect leverage has peaked and should now begin to reduce, this is as expected and therefore our credit outlook remains Stable.
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