Gallaher plan to amend terms of outstanding bonds positive for ratings - Moody's |
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Wed, 17 Oct 2007 17:16
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MUMBAI (Thomson Financial) - Moody's Investors Service said the proposal by Gallaher Group PLC to amend the terms and conditions of all its outstanding bonds would lead to an upgrade in Gallaher's 'A2' bond ratings to 'Aa3', in line with the 'Aa3' rating level of parent Japan Tobacco Inc.On Oct 16, Gallaher said it had commenced a consent solicitation relating to its all outstanding bonds, for the extraordinary resolution at the bondholders' meeting of certain amendments to the terms and conditions of the bonds, including the issuer substitution and a guarantor substitution.Japan Tobacco had executed a terminable guarantee for the Gallaher bonds on Sept 11, which had prompted Moody's to place the 'A2' ratings on review for possible upgrade.If passed, the extraordinary resolution in favour of the proposed amendments would replace the terminable guarantee with a permanent guarantee by Japan Tobacco. At the same time, JTI (UK) Finance PLC would replace Gallaher as issuer, Moody's said.TFN.newsdesk@thomson.comans/ranCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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TAQA North's guaranteed bonds rated '(P)Aa2' - Moody's 