“Fitch Rates Battery Park City Authority Series 2009A & 2009B Revs 'AAA ... - Earthtimes” plus 4 more |
- Fitch Rates Battery Park City Authority Series 2009A & 2009B Revs 'AAA ... - Earthtimes
- GAO: Gov't improperly awarded $100M in contracts to firms in small ... - Minneapolis Star Tribune
- Phoenix Solar eyes partner in China - Gather.com
- IN BRIEF - Las Vegas Review Journal
- SAS Named a 'Leader' in Business Performance Solutions by Independent ... - Consumer Electronics Net
| Fitch Rates Battery Park City Authority Series 2009A & 2009B Revs 'AAA ... - Earthtimes Posted: 19 Nov 2009 01:12 PM PST NEW YORK - (Business Wire) Fitch Ratings assigns an 'AAA' rating to Battery Park City Authority's (BPCA) $100 million senior revenue bonds, series 2009A and 2009B. Fitch also affirms its ratings on BPCA's outstanding debt as follows: --$392 million series 2003A senior revenue bonds at 'AAA'; --$235 million series 2003B junior auction rate securities (ARS) at 'AA'; --$397 million series 2003C junior ARS at 'AA'. The Rating Outlooks on all of the series are revised to Negative from Stable. The ratings are supported by current pro forma debt service coverage levels from pledged lease revenues, as well as a sound legal structure to enforce collections. The revision of the Rating Outlook to Negative is based on concerns regarding the potential volatility of pledged revenues due to the national recession, which has had an increasingly negative impact on residential and commercial real estate values, and the contraction of the financial services industry in particular, which may have an especially negative impact on the demand for office and residential real estate in downtown Manhattan, including Battery Park City. The space lease for Merrill Lynch, accounting for 55% of the square footage within the four World Financial Center towers, expires in 2013, and uncertainty regarding the terms of new space leases to replace expiring ones may put additional pressure on the quality of the pledged revenues. BPCA is a New York State public benefit corporation that owns and manages the infrastructure and site development for Battery Park City, a 92 acre complex of prime office, hotel, and luxury residential condominium and rental apartment buildings in downtown Manhattan. Pledged revenues are payments in lieu of real estate taxes (PILOTs) and certain other components of rent from commercial leases of the World Finance Center (WFC), Goldman Sachs headquarters, and the New York Mercantile Exchange (NYMEX); 30 residential subleases consisting of various condominium and rental apartment buildings; and two hotel leases. The WFC towers 1, 2, and 4 are leased by BPCA to various subsidiaries of Brookfield Properties (Brookfield, rated 'BBB' by Fitch) through 2069 (30 years past the final maturity of the bonds). WFC tower 3 is leased through 2069 to Brookfield and American Express Bank Ltd (American Express) as joint tenants. Brookfield subleases most of its space to other tenants including Merrill Lynch & Co. (Merrill Lynch), Cadwalader Wickersham & Taft LLP, Deloitte & Touche LLP, Nomura Holding America Inc, the Securities and Exchange Commission, Royal Bank of Canada, and Mass Mutual Life Insurance. These subleases expire before the final maturity of the bonds, and while Brookfield's obligation to make lease payments to BPCA is not contingent on the renewal or replacement of subtenants, its ability to make lease payments may be affected by the terms of the future subleases. The NYMEX facility provides a less significant contribution to pledged revenues and the space comprising its trading floor is not subject to any PILOT or rent through 2017. Goldman Sachs will begin occupying its space by the end of 2009, although its tax credits are expected to offset any PILOT payments through 2013. Residential property subleases include Gateway Plaza, a rent stabilized apartment building with 1,712 residential units and 29 other subleases totaling 3,203 market rate rental units and 3,969 condominium units. The hotel leases are to Embassy Suites (463 rooms) and Ritz-Carlton (298 rooms). Pledged revenues are currently derived approximately 55% from the office properties, 40% from residential properties and 5% from hotels. It is projected that over the life of the bonds, the revenues from the residential properties will eventually contribute over slightly 50% of the pledged revenues. The bulk of pledged revenues (76%) are from PILOTs, which have a moderate degree of volatility due to changes in assessed valuations, which can be offset to some degree by changes in tax rates. The remaining pledged revenues are from base and supplemental rent (24%), which are contractually based but subject to renegotiation. Revenue collection is bolstered by the right of BPCA to take the leased space (including improvements), free and clear of any mortgage lien, in the event of an uncured default by a lessee. This provides an added incentive for the lessee to pay, or a mortgage lender to cure, a lease default. Collection protection is less strong for 12 of the 18 condominium leases, given a New York State Court of Appeals decision that foreclosure by a first mortgagee of a residential property owner extinguishes BPCA's lien on the unit's accrued rental arrears. Collections on residential properties in the event of non-payment may also be complicated by a time-consuming eviction process, and even more so for the condominium associations, whose boards are not responsible for payment defaults by individual unit owners, so BPCA would need to seek redress from the individual defaulting property owners. Additionally, if BPCA were to become the owner of a condominium unit, it would become liable for any common charges payable to the condominium board. Debt service is paid from pledged revenues net of operating expenses. Pledged revenues in 2009 are expected to be $193 million. This has grown at an average rate of 3.6% over the last five years due in part to seven new residential leases. Operating expenses are expected to be $27.4 million in 2009; this is actually down from $29.5 million in 2003. Based on expected 2009 financial results, pro forma coverage was 3.1 times (x) debt service for the senior bonds, and 2.1x debt service for all debt. A debt service reserve is funded at maximum annual debt service. The series 2003A, 2009A, and 2009B senior bonds are fixed rate. The series 2003B and 2003C are junior ARS; the series 2003C ARS are synthetically fixed through an interest rate swap. The current $100 million offering will raise BPCA's senior debt outstanding to $492 million. BPCA's debt service schedule had been somewhat frontloaded, and while the current financing will raise near-term debt service payments slightly, the major effect will be in years 2032-2039, with the result being a more level debt service schedule through final maturity. BPCA's future internal capital needs are limited, and this is an important consideration in Fitch's analysis. However, New York State has announced that it is asking BPCA for a transfer of $300 million, which would require approval from BPCA's board, as well as NYC's mayor and comptroller. Should the request be approved, BPCA is expected to partially fund this through a $250 million additional bonding that is not included in the current plan of finance. Debt service coverage from pledged revenues, including the $100 million 2009 series A and B financing, is well above BPCA's additional bonds test of 2x debt service coverage for senior bonds and 1.55x coverage for senior and junior bonds, or rating affirmation; however, if actual coverage approached those levels it would be viewed as a negative credit factor in Fitch's analysis and could be cause for a rating downgrade. The potential additional $250 million in bonds being requested by the state, if issued, could be structured as subordinate to the current bonds outstanding, although definitive plans have not yet been made. Additional information is available at 'www.fitchratings.com'. ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.
Fitch Ratings, New York This content has passed through fivefilters.org. |
| GAO: Gov't improperly awarded $100M in contracts to firms in small ... - Minneapolis Star Tribune Posted: 19 Nov 2009 07:43 AM PST But in its report, the GAO disagreed, saying federal rules require the SBA to verify a company's eligibility and to impose penalties if a firm misrepresents itself. The GAO also faulted a broader lack of accountability that allowed abuses to continue. "By failing to hold firms accountable, SBA and contracting agencies have sent a message to the contracting community that there is no punishment or consequences for committing fraud or abusing the intent of the veterans program," investigators wrote. Among the cited abuses, based on the GAO's spot review of cases since 2003: _A Las Vegas firm falsely claimed it was a veteran-owned small business to compete for $200 million in contracting work to maintain trailers for Katrina victims. After a competitor protested, the misrepresentation was uncovered and work was stopped, but the company had already received $7.5 million. The firm received no other punishments. _Using veteran-owned businesses as a front, a septic tank company in Austin, Texas, received an Army contract for work at Fort Drum, N.Y., and Fort Irwin, Calif. After its status was challenged last year and it was found to be ineligible, the Austin company was allowed to continue work on the Army contract through 2013 for a total value of up to $1.1 million. _A contracting employee at MacDill Air Force Base in Tampa, Fla., set up a veteran-owned business and then passed along a $900,000 furniture contract to his wife's non-veteran-owned firm, who in turn gave the work to a furniture manufacturer who actually performed the contract. Contracting officials acknowledged they were aware the employee had little involvement or experience in performing the furniture contract when making the award. The GAO recommended that the SBA work to develop penalties that would prohibit companies from getting federal work if they are found to knowingly misrepresent their status as veteran-owned businesses. It also urged the Veterans Affairs Department to expand its database of validated veteran-owned small businesses, so that the SBA and contracting officials can access it to verify eligibility. This content has passed through fivefilters.org. |
| Phoenix Solar eyes partner in China - Gather.com Posted: 20 Nov 2009 04:35 AM PST
By Leonora Walet, Asia Green Investment Correspondent SINGAPORE (Reuters) - Phoenix Solar AG, one of Phoenix Solar AG, is in talks to partner with a Chinese firm to push its business in China, said a company executive. The German solar systems builder is also looking for opportunities elsewhere in Asia and may open an office in Malaysia, which recently announced a plan to offer new solar incentives. "Asia has huge growth prospects because so far it is so underpenetrated," Christophe Inglin, Phoenix's managing director for Asia Pacific, told Reuters on the sidelines of a clean energy conference in Singapore. "We will definitely open an office in a country like Malaysia if the right conditions are in place," he said. Malaysia earlier announced a plan to implement a feed-in tariff like Germany to enable users to invest in solar systems and sell excess power to the grid. Like most in the sector, Phoenix was not immune to the collapse in demand for solar products after funding for projects turned scarce. But the company is set to take advantage of opportunities in growth markets including France and Greece, where state subsidies are driving demand. That contrasts with Germany, Phoenix's biggest market, which is expected to announce new cuts in solar subsidies next year. Goldman Sachs expects solar demand in France to expand 125 percent in 2009 after more than doubling last year. In Greece, demand growth is expected at 400 percent, after recording expansion of 900 percent in 2008. China leads the region, with growth seen at nearly 500 percent this year, said Goldman Sachs. "In developing markets we have to be opportunistic," said Inglin. "It's very difficult to predict where new markets will crop up." The company is in talks with a Chinese firm to help boost its business in the mainland. Asia business currently represents just over 1 percent of total company revenue. But Inglin hopes to grow this to more than 5 percent in three years. "I see no reason why it can't if you start at a very low base," he said. (Reporting by Leonora Walet; Editing by Jacqueline Wong) http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE5AI2MS20091119 This content has passed through fivefilters.org. |
| IN BRIEF - Las Vegas Review Journal Posted: 19 Nov 2009 01:59 AM PST Hershey, hoping to expand its overseas presence, has lined up a potential partner as the most recognizable name in American chocolate considers starting a bidding war for British candy maker Cadbury PLC. Italian candy maker Ferrero International SA could give The Hershey Co. the financial firepower to top a $16.4 billion hostile bid by Kraft Foods Inc. Hershey and Ferrero said Wednesday they are considering a possible offer for Cadbury. "Hershey confirms that it is reviewing its options and at this stage there can be no assurance that any proposal or offer from Hershey will be forthcoming," the company said in an announcement to the London Stock Exchange on Wednesday. Ferrero, which makes Nutella chocolate spread and Tic Tacs, posted a similar statement. TOKYO Delta, partners to offer $1 billion to Japan Airlines Delta Air Lines and its alliance partners said Wednesday they are making a billion-dollar offer to lure loss-making Japan Airlines from its affiliation with American Airlines. Delta is "by far the strongest partner for Japan Airlines," company President Edward Bastian told reporters in Tokyo, escalating the tug-of-war for a minority stake in Japan's flagship carrier. The offer from Delta and the SkyTeam alliance includes a $500 million capital investment, $300 million in short-term revenue guarantees and $200 million in asset-backed financing for the airline, known as JAL. SkyTeam would also cover the entire cost for the carrier to transfer from American's oneworld alliance, estimated by Delta to total $20 million. SAN FRANCISCO Wells Fargo to repay customers $1.4 billion to settle lawsuit Wells Fargo & Co. on Wednesday agreed to repay customers about $1.4 billion to settle a lawsuit and regulatory investigations alleging the company improperly marketed risky investments as safe. California Attorney General Jerry Brown sued the San Francisco-based bank last year and the North American Securities Administrators Association launched an inquiry of the bank's subsidiaries over sales of so-called auction-rate securities. The investments resemble corporate debt, except that the rate of interest they pay is frequently reset at auctions. A number of companies, charities and individual investors were told the securities were as safe as cash. But the $330 billion market collapsed in February 2008, and investors' accounts were frozen. Wells Fargo said Wednesday it agreed to buy back the securities from customers nationwide. The company also agreed to pay a $1.9 million fine while not admitting any wrongdoing. This content has passed through fivefilters.org. |
| SAS Named a 'Leader' in Business Performance Solutions by Independent ... - Consumer Electronics Net Posted: 19 Nov 2009 01:12 PM PST November 19, 2009 -- CARY, N.C., BUSINESS WIRE --SAS received the top rank for cost and profitability analysis ' earning a perfect score ' while also receiving the top score in product strategy and vision in the November 16, 2009, Forrester Wave: Business Performance Solutions, Q4 2009 report.  'This past year, many organizations had to scale back,' said Jonathan Hornby, Global Marketing Director for Performance Management at SAS. 'Without a true understanding of what drives cost, profit and value, many have unfortunately cut muscle and bone to meet short-term targets at the expense of future prosperity. There is a better way. SAS enables customers to model, predict and optimize future scenarios so they can make fact-based decisions.' Dealing with economic uncertainty Today's economy makes it imperative to implement exceptional planning and measurement processes and systems. According to Forrester Research's report, 'planning, forecasting, financial reporting and performance measurement solutions are essential for addressing economic uncertainty. Forecasting, especially, has helped companies cope with market volatility in the face of the economic slowdown and economic instability that now seem to be easing.' Paul Hamerman reported, 'SAS has sophisticated capabilities in cost and profitability, forecasting and strategy management, and it focuses on business issues well beyond the scope of finance.' To improve performance and outpace the competition, companies do well to forecast and measure leading indicators rather than relying on lagging indicators and historical accounting. Companies that can identify opportunities and threats more easily than competitors, understand the implications, update strategy quickly and execute consistently across the organization will be the winners. 'With leading capabilities in cost and profitability management and predictive analytics, SAS is a smart choice for sophisticated companies. The predictive technology supports complex planning and forecasting applications,' Hamerman notes in this report. SAS for Performance Management SAS offers a comprehensive set of business performance offerings, delivering on all core capabilities evaluated for this Forrester report: planning and budgeting; consolidation and reporting; strategy and performance; and cost and profitability analysis, together with foundational BI capabilities. SAS offerings are well-integrated and move beyond the traditional purview of finance to give a complete picture of performance. SAS for Performance Management, implemented at more than 1,500 customer sites, enables organizations to organize and cleanse data as a critical first step. Many then address financial aspects of budgeting and planning as a foundation for strategy management. Others focus on understanding what drives value. To help organizations improve performance, SAS' intertwined solutions include:
SAS solutions are built on a common, scalable platform ' theSAS Business Analytics Framework' to address the end-to-end process. With SAS, companies can start with a single solution and evolve at a pace that suits their needs. About SAS SAS is the leader in business analytics software and services, and the largest independent vendor in the business intelligence market. Through innovative solutions delivered within an integrated framework, SAS helps customers at more than 45,000 global sites improve performance and deliver value by making better decisions faster. Since 1976 SAS has been giving customers around the world THE POWER TO KNOW. SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. indicates USA registration. Other brand and product names are trademarks of their respective companies. Copyright 2009 SAS Institute Inc. All rights reserved.
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