Softbank 5.125% 19Sep2027
Softbank 5.125% 19Sep2027
Cust price: 100.00
YTM: 5.125%
Moody's: Ba1
Advance margin: 50%
Ccy: USD
Views from Morningstar on Softbank:
- With the vast array of Internet and e-commerce investments that SoftBank owns, it could unearth more investments that, like Alibaba, offer very high returns.
- Should SoftBank succeed in turning around Sprint, it could generate significant valuation uplift.
- Masayoshi Son has an excellent track record of building value and expanding the company. An investment in SoftBank offers minority shareholders an opportunity to invest alongside him.
Moody's view on Softbank bonds:
We expect SoftBank will use a substantial part of the proceeds to refinance some of its existing bank loans, and that the issuance will therefore have only a limited impact on its gross debt and leverage for the fiscal year ending March 2018 (fiscal 2017)," says Motoki Yanase, a Moody's Vice President and Senior Credit Officer.
For fiscal 2017, Moody's expects the company's adjusted gross leverage will trend above the rating downgrade threshold of 5.5x. However, SoftBank's Ba1 CFR is supported by a significant degree of financial flexibility, including *large amounts of cash on hand and unrealized gains from investments, such as its equity stake in Alibaba Group Holding Limited* (A1 stable).
Nonetheless, if the total debt at the end of March 2018 rises significantly from the amount at the end of June 2017, it could add pressure to the current ratings and/or outlook.
Cust price: 100.00
YTM: 5.125%
Moody's: Ba1
Advance margin: 50%
Ccy: USD
Views from Morningstar on Softbank:
- With the vast array of Internet and e-commerce investments that SoftBank owns, it could unearth more investments that, like Alibaba, offer very high returns.
- Should SoftBank succeed in turning around Sprint, it could generate significant valuation uplift.
- Masayoshi Son has an excellent track record of building value and expanding the company. An investment in SoftBank offers minority shareholders an opportunity to invest alongside him.
Moody's view on Softbank bonds:
We expect SoftBank will use a substantial part of the proceeds to refinance some of its existing bank loans, and that the issuance will therefore have only a limited impact on its gross debt and leverage for the fiscal year ending March 2018 (fiscal 2017)," says Motoki Yanase, a Moody's Vice President and Senior Credit Officer.
For fiscal 2017, Moody's expects the company's adjusted gross leverage will trend above the rating downgrade threshold of 5.5x. However, SoftBank's Ba1 CFR is supported by a significant degree of financial flexibility, including *large amounts of cash on hand and unrealized gains from investments, such as its equity stake in Alibaba Group Holding Limited* (A1 stable).
Nonetheless, if the total debt at the end of March 2018 rises significantly from the amount at the end of June 2017, it could add pressure to the current ratings and/or outlook.
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