CreditSights http://www.alacrastore.com/publisher-rss/creditsights Wednesday, July 23, 2008 11:15:07 PM 273 en AlacraStore RSS Builder 1.0 30 http://www.alacrastore.com/storecontent/cs/72079cs/72079norm AT&T #Q##: Warning Signs Amid Otherwise Solid Results AT&T reported its Q# results, which were characterized by strong wireless results, improving margins overall, and positive trends in the wholesale wireline business. Taken as a whole,...720792226YesD0Article726206122320162247651964218986corp119303G/Wireless Technology33Capital Structure66Earnings Reports - TMT7/23/2008 11:12:33 PM150AT&T reported Q2:08 results which we believe are positive overall, despite containing several warning signs which we discuss.72079Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72098cs/72098norm Monoline Transformers - More Than Meets The Eye Our opinion that credit default swaps are not actually insurance is somewhat bolstered by the circuitous manner in which CDS were written by the monolines The transformer structure, with...720981955YesD0Articlecorpstrategy1322961CDOs14Regulatory Matters81Derivatives And Indices98Monolines7/23/2008 11:12:33 PM150We seek to shed some light - however little - on the issues surrounding the monoline insurers usage of transformer agreements to write CDS protection and how protection buyers might stand in a regulatory seizure.72098Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72105cs/72105norm M-Real #Q##: Long Road Ahead We discuss M-Real's #Q## earnings in light of rampant input cost inflation, the strong Euro, and a string of price increases. We evaluate relative value for #-yr and #-yr protection in the context of the...721052385YesD0Article1913corphy71391690Covenants54Euro Markets Issuers42High Yield7/23/2008 11:12:33 PM150M-Real reported 2Q08 adjusted EBITDA of €54 million, down from €77 million in the year-ago quarter. We evaluate relative value by stacking M-Real's hefty maturity schedule against potential sources of liquidity.72105Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72134cs/72134norm NYT: S&P's Itchy Trigger Finger The New York Times was hit with some of the same late-quarter cuts in national advertising spend as early-reporter Gannett, but the quarter was not as bad on the national ad front The beginning of the...721342159YesD0Article17251117corp1333Capital Structure66Earnings Reports - TMT7/23/2008 11:12:33 PM150The New York Times national advertising sales in June hit some of the same air pockets as Gannett, and the downdrafts continue in July. S&P put on watch for downgrade even though the company could meet S&P's 2008 bogeys, we think.72134Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72107cs/72107norm Boeing #Q##: Well Prepared for Order Book Uncertainties Boeing reported #Q## results that reflected solid market demand despite some setbacks to earnings due to the AEW&C charge and ### related costs. As the OEM's airline customer...721071926YesD0Article76corp72168Earnings Reports - Industrials/Consumer54Euro Markets Issuers7/23/2008 10:12:32 PM150Despite inevitable order book disruptions and the increasingly challenging environment among its airline customers, Boeing still maintains a strong credit risk profile.72107Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72089cs/72089norm Sector Weightings Update: Basic Industries We maintain our Underweight on the Chemicals sector, reflecting our increasing concern about the impact of a possible recession in the US and softer growth globally in this economically sensitive...Article16291458545Sector Weightings7/23/2008 9:10:34 PM150Across the basic industries we are continuing with our Underweight recommendations on the chemicals and metals & mining sectors with a Marketweight on Paper & Packaging.strategy720892011YesD072089Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72099cs/72099norm Montpelier Re #Q##: Solid and CAT-Less Results were primarily attributable to solid underwriting performance characterized by low catastrophe losses and favorable prior year reserve development partially offset by lower net investment...720991179YesD0Article1917corp327/23/2008 9:10:34 PM150While the company's earnings performance was sound, we are somewhat concerned with the recent shift in the company's investment portfolio away from fixed maturities and into alternative investments.72099Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72100cs/72100norm Boston Properties #Q##: Please Sir, Can I Have Some More Acquisitions? Boston Properties reported results beat consensus but fell slightly short after adjusting for its recent acquisition of the GM Building. As BXP digests its $#.#...721001380YesD0Article1432corp2867Earnings Reports - Financials7/23/2008 9:10:34 PM150BXP's results beat estimates but fell slightly short after adjusting for its recent acquisition. The company's appetite for acquisitions has only been whetted as its financial profile makes it a logical buyer of distressed assets.72100Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72102cs/72102norm NXP Semiconductor: Conversation with CFO On July ##, we spoke with NXP CFO Karl-Henrik Sundstom. Our biggest takeaway was that Sundstom reiterated NXP "will receive the $#,###M [payment for the ST-NXP Wireless JV] soon." If this is...72102945YesC0Article2070corphy146183642High Yield7/23/2008 9:10:34 PM150On July 23, we spoke with NXP CFO Karl-Henrik Sundstöm. In this article, we summarize the conversation.72102Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72133cs/72133norm Earnings Note: Methanex #Q## - China Drives Fundamentals Methanex reported #Q## sales of $### million and adjusted EBITDA of $## million, up ##% and #%, respectively from the previous year figures.  On a sequential basis however, sales...72133778YesC0Article988corphy1542High Yield68Earnings Reports - Industrials/Consumer7/23/2008 9:10:34 PM150China producers lowered operating rates and shifted from a net exporter of about 150,000 tonnes in 1Q08 to a net importer of about 400,000 tonnes in 2Q08, helping to tighten fundamentals and push methanol prices higher in the recent months.72133Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72095cs/72095norm Earnings Note: Praxair & Air Products - Defying Gravity Our North American industrial gases one again reported solid revenue and adjusted EBITDA growth in the most recent quarter.    While the chemicals sector has been knocked around...720951060YesD0Article940145corp1568Earnings Reports - Industrials/Consumer7/23/2008 9:10:00 PM150While the chemicals sector has been knocked around by a one-two punch of a slowing economy and rising energy costs, industrial gases continue to defy gravity, kept afloat by cost pass-through contracts and exposure to strong end-markets.72095Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72096cs/72096norm ST Microelectronics #Q##: Key Takeaways ST Microelectronics reported solid Q#:## earnings, highlighted by solid revenue growth and guidance. Growth was driven by Industrial & Other, Telecom, Computer, and Consumer. Wireless grew ~##%...720961083YesD0Article20822070corp14672102361833Capital Structure66Earnings Reports - TMT7/23/2008 9:10:00 PM150On July 22, ST Microelectronics reported solid Q2:08 earnings, highlighted by solid revenue growth and guidance. In this article we comment on the results.72096Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72090cs/72090norm KPN #Q## - The Grass Really Can be Greener on the Other Side KPN gave a good performance in #Q## with ##% revenue growth (albeit largely inorganic) and underlying EBITDA improvement of almost #%. The company revised up domestic EBITDA...720901361YesD0Article302886225319corp3666Earnings Reports - TMT7/23/2008 7:10:48 PM150KPN reported encouraging 2Q08 numbers across its business lines. We examine KPN's contrasting fortunes compared to other incumbents in the face of tough conditions across the European telecoms space.72090Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72092cs/72092norm Telenor #Q## - Inflation Concerns Cloud the Horizon Telenor reported relatively weak #Q## figures, revising down revenue guidance for the year from #% to #% on inflation and currency concerns. Some early signs of improvement in the...720921480YesD0Article1283corp3666Earnings Reports - TMT7/23/2008 7:10:48 PM150Telenor's disappointing 2Q08 results reflect the challenges the company faces from higher inflation in emerging markets.72092Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72094cs/72094norm Earnings Note: ConocoPhillips #Q## - Production Continues to Languish ConocoPhillips (COP; A#/A) reported Q### recurring earnings of $#.# billion, or $#.##/share, beating consensus of $#.##/share, and rising ##% QoQ and ##% YoY (after...72094650YesC0Article166corp601533Capital Structure65Earnings Reports - Energy7/23/2008 7:10:48 PM150COP reported Q208 recurring earnings of $5.4 billion, or $3.49/share, beating consensus of $3.48/share, and rising 38% QoQ and 21% YoY72094Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72097cs/72097norm EXC #Q##: The Healing Continues EXC reported #Q## adjusted operating earnings of $#.##/shr, beating estimates by $#.##/shr Higher results were due to increased output and more favorable margins realized at EXC Gen The forthcoming...72097952YesC0Article545corp12265Earnings Reports - Energy7/23/2008 7:10:48 PM150EXC beats on strong Gen performance72097Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72127cs/72127norm Whirlpool #Q##: Solid Performance During A Tough Quarter Despite demand for U.S. appliances dropping for an eighth consecutive quarter and higher raw material as well as oil related costs, Whirlpool reported solid second quarter results...72127848YesC0Article142corp468Earnings Reports - Industrials/Consumer7/23/2008 7:10:48 PM150Despite the U.S. appliance industry posting its eighth consecutive quarter of declines and having to face significant material as well as oil related costs, Whirlpool posted solid second quarter results.72127Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72125cs/72125norm Northwest Airlines #Q## - Strong Merger Stretch Run An outsized out-of-period hedge gain boosted operating profitability. Another datapoint for Atlantic saturation issues. Merger on track. Very bullish RASM guidance going into the...72125963YesC0Article715corphy3468Earnings Reports - Industrials/Consumer42High Yield33Capital Structure7/23/2008 7:10:00 PM150Management is very bullish on 2H08 PRASM.72125Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72088cs/72088norm Oil Inventory & Margins: Gasoline Supplies Build as Demand Falters Crude prices fell $#.##/bbl or #%, to settle at $###.##/bbl on Wednesday, dipping below the $###/bbl threshold for the first time since early-June as the DOE report...720881121YesD0Articlecorp156033Capital Structure37Oil & Gas: Weekly Oil Inventory & Margins Report7/23/2008 6:10:31 PM150Gasoline inventories increased by 2.8 mmb last week, coming in well ahead of expectations of a 0.2 mmb build, boosting inventories to 217.1 mmb, 6% above last year and 4% above the five-year seasonal average.72088Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71277cs/71277norm Gap #Q## Tearsheet Over the long term, GAP has seen reduced credit risk through the reduction of debt, but operational challenges in its Gap and Old Navy store remain an unsolved issue amidst considerably diminished store traffic and...71277447YesC21Tearsheet509tearsheets/premium177/23/2008 5:10:31 PM15071277Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71965cs/71965norm Initiating Coverage on Louisiana-Pacific Part #: The Cracks Are Visible We evaluate relative value for LPX based on the company's deteriorating operating fundamentals and thinning liquidity cushion. We discuss each tranche of LPX's...719654767YesD0Article494corphy12251642High Yield90Covenants33Capital Structure7/23/2008 11:13:02 AM150Having discussed operating fundamentals in Part 1, we now delve into Louisiana-Pacific's capital structure and liquidity issues.71965Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72015cs/72015norm AK Steel: #Q## Results - Price Hikes Sweet, Outlook More Sour #Q## sales increased by ##% YoY to $#.## billion, while adjusted EBITDA rose by ##% to $### million.  Like all steelmakers, AKS has been faced with significantly higher...72015994YesC0Article645corphy1468Earnings Reports - Industrials/Consumer42High Yield7/23/2008 6:12:57 AM150Solid steel fundamentals have allowed price hikes to continue largely unabated, but the longer-term outlook is more troubling as further end market weakness seems likely.72015Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72046cs/72046norm Royal Caribbean: #Q## Results - "Fuel and the Economy" And Capex Royal Caribbean's equity and CDS rallied on the back of falling oil prices and the assertion on the analyst conference call that the cruise business has, to-date, shrugged...720461572YesD0Article1820corphy1168Earnings Reports - Industrials/Consumer42High Yield7/23/2008 6:12:57 AM150RCL's stock surged 18% on a breather from what management views as the two significant pressures on the name--fuel and the economy. Capex is pressing too, but widened spreads may now offer compensation for the risks.72046Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72039cs/72039norm Freeport McMoRan: #Q## Results - Grasberg Continues To Weigh On Results #Q## sales of $#.## billion were down $# million YoY, while adjusted EBITDA fell #% to $#.## billion. Results were plagued from the mining of the low-grade section...hy14Earnings Reports - Industrials/Consumer42High Yield7/23/2008 6:12:00 AM150While copper and gold fundamentals remained solid during the quarter, results were hampered by ongoing production issues at Grasberg.68720391389YesD0Article966corp72039Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72052cs/72052norm JetBlue #Q## - "New Normal" Means Losses Industry-leading yield performance drove positive operating earnings. Revenue growth covered ##% of higher fuel and operating expenses. Strong RASM expectations for the second half of ####...720521201YesD0Article1145corphy3468Earnings Reports - Industrials/Consumer42High Yield33Capital Structure7/23/2008 2:19:39 AM150JBLU is in better shape than the competition, but that does not mean profits.72052Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72037cs/72037norm Downgrading NXP to Underweight: It's the Working Capital! We are downgrading NXP credit to Underweight from Overweight due to our concern on persistent working capital issues and the possibility of ST-NXP Wireless repricing among other...720372547YesD9Spotlight2070corphy146183666Earnings Reports - TMT73Spotlight Reports42High Yield7/23/2008 1:12:33 AM500We are downgrading NXP credit to Underweight from Overweight due to our concern on persistent working capital issues and possibility of ST-NXP Wireless repricing among other issues.72037Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72002cs/72002norm Vodafone #Q##/##: Pain in Spain Erases Gains VOD's interim revenue figures were disappointing as an unexpected #.#pp sequential decline in organic growth in Spain to -#.#% created a major drag on the group. Thus far VOD's experience...720022611YesD0Article2253028862107280corphy3666Earnings Reports - TMT7/23/2008 12:12:33 AM150Vodafone issued a disappointing interim management statement for 1Q08/09, with performance in Spain particularly challenging. We assess the implications for VOD and the European telecoms space as a whole.72002Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72010cs/72010norm Ericsson #Q##: Margin Pressure to Persist Ericsson's results were characterized by margin pressure. We expect the margin pressure to persist due to continued higher proportion of new builds, geographical mix among other items. The company...720101028YesD0Article313corp192183666Earnings Reports - TMT7/23/2008 12:12:33 AM150On July 22, Ericsson reported 2Q08 results that were characterized by margin pressure. In this article, we comment on the results.72010Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72056cs/72056norm Earnings Note: SuperValu #Q## - Energized Headwinds SVU reported a #.#% increase in total sales to $##.## billion and an adjusted EBITDA decline of #.#% to $### million in #Q##. With the consumer altering its shopping behaviors to...720561572YesD0Article211corphy1768Earnings Reports - Industrials/Consumer42High Yield7/23/2008 12:12:33 AM150SVU joined the growing list of grocers to cut FY08 estimates due to a weak consumer. Weak top-line sales and declining profits have triggered concerns. However, we remain upbeat from a credit perspective.72056Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72040cs/72040norm Freescale #Q##: Excellent Quarter Freescale reported very solid #Q## results characterized by modest but solid revenue growth. The company guided that its Q# revenue - excluding its Cellular business - will see a "modest decline" on...720401866Earnings Reports - TMT42High Yield7/23/2008 12:12:00 AM150On July 22, 2008 Freescale reported 2Q08 earnings after market close. Overall, the company's results were excellent - especially when comparing to the results of some of its peers. In this article, we comment on several areas.1541YesD0Article1641corphy172040Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72004cs/72004norm KeyCorp: #Q## Misses - Slams Into LILO Twister KeyCorp's reported results missed consensus Reported results hurt by lease-in, lease-out transaction charge, higher credit costs, offset by fee income Exploring the sale of residential...720042257YesD0Article334corp4233Capital Structure67Earnings Reports - Financials7/22/2008 11:13:47 PM150KeyCorp's earnings missed consensus due to weaker credit quality trends. Reported results hurt by LILO charge of $1.1 billion. Raises $1.7 billion in capital and cuts dividend to conserve capital.72004Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72045cs/72045norm United Air Lines #Q## - Equity Dream Trip Revenue gained #% Y-oY, covering increased fuel and operating costs by only ##%. The theory is that industry leading capacity cuts across all sectors will stimulate strong fare increases, but...720451501YesD0Article94corphy3468Earnings Reports - Industrials/Consumer42High Yield33Capital Structure7/22/2008 11:13:47 PM150The equity is rallying into a very uncertain future.72045Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71977cs/71977norm Autos: Summer of Our Discontent Part # With asset price swings across the auto complex having eclipsed #### and now reminding us of the great #H-#### Chrysler swoon, we look at the key drivers of the fundamental risk story and where...55375912110187127497309048922011913166491185497197714459YesD0Article5036838121222220551202056802192238668955corphy254Euro Markets Issuers42High Yield7/22/2008 11:13:00 PM150We start a multi-part series on the moving parts of the auto story from justifiable worries to utter neuroses and from the macro to micro level. Are flashbacks to any of 1979, '82, '91, or '05 the right ones? Or is this an all-new game?71977Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72013cs/72013norm Utilities First Half Review, Part III: High Yield Overweights and All Underweights In Parts I and II, we reiterated our sector overweight and added SoCalEd CDS only to our outperform overweights and AEP and D to our defensive overweights,...720131798YesD8BondScore764258288259508637bscore/researchcorp2226BondScore: Company/Industry7BondScore42High Yield7/22/2008 11:13:00 PM250In Part III of our sector discussion, we maintain and discuss all our high yield overweights and all underweights. We remain overweight AYE, CMS and NRG and underweight AEE, DUK and ED.72013Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72022cs/72022norm WaMu: #Q## Big Miss - Option ARM Facts or Fiction? Washington Mutual core missed consensus on higher provisions By segment, Commercial Group was higher sequentially; Card Services, Retail Banking and Home Loans segments in a loss ...720223580YesD0Article415corp3033Capital Structure67Earnings Reports - Financials32Mortgages7/22/2008 11:13:00 PM150WaMu missed consensus and posted a large net loss. We remain cautious as credit quality trends remain under pressure, particularly option ARMs. WaMu makes case that it is nearing a bottom. We are still not convinced.72022Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72003cs/72003norm Earnings Note: Halliburton #Q## Results In-line - North American Outlook Significantly Improved Halliburton (HAL; A#/A) reported recurring #Q## earnings of $### million, or $#.##/share, in-line with consensus estimates and up #% QoQ...150Halliburton (HAL; A2/A) reported recurring 2Q08 earnings of $626 million, or $0.68/share, in-line with consensus estimates and up 9% QoQ and 11% YoY.720031651YesD0Article172corp156033Capital Structure65Earnings Reports - Energy7/22/2008 10:11:45 PM72003Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72005cs/72005norm Fifth Third: #Q## Core Beats - Margins Offset Credit, Capital Rebuilds Fifth Third missed due to leveraged lease charge and credit losses Beat consensus on core basis Core net interest margin improves on wider spread on borrowings...720051946YesD0Article343corp4233Capital Structure67Earnings Reports - Financials7/22/2008 10:11:45 PM150Fifth Third topped expectations on a core basis aided by net interest margin improvement. Credit quality remains a key concern as Fifth Third strengthens capital position by raising capital and cutting the dividend.72005Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72012cs/72012norm Regions Financial: #Q## Core Misses - Dividend Cut to Match Earnings Reality Earnings missed consensus Credit quality weaker, driven by home equity in Florida, residential developers, and condo loans Dividend cut to align payout ratio...720122472YesD0Article1132corp4233Capital Structure67Earnings Reports - Financials7/22/2008 10:11:45 PM150Regions missed estimates on higher provisions, and lower revenues. Dividend level is cut. Asset quality problems driven by home equity, residential developers.72012Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72018cs/72018norm Earnings Note: Baker Hughes #Q## Beats on U.S. Rebound Baker Hughes (BHI; A#/A) reported recurring #Q## earnings of $### million, or $#.##/share, coming in well ahead of consensus estimates of $#.##/share and reflecting a ##% QoQ and...72018951YesC0Article161corp601565Earnings Reports - Energy33Capital Structure7/22/2008 10:11:45 PM150Baker Hughes (BHI; A2/A) reported recurring 2Q08 earnings of $420 million, or $1.36/share, coming in well ahead of consensus estimates of $1.24/share and reflecting a 12% QoQ and 25% YoY improvement.72018Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72043cs/72043norm Caterpillar #Q##: Maximizing Its Global Footprint Caterpillar reported impressive second quarter results with highlights including record sales figures, companywide margin expansion, impressive cash flow generation and a rock solid...720431248YesD0Article462054corp454Euro Markets Issuers68Earnings Reports - Industrials/Consumer7/22/2008 10:11:45 PM150CAT was able to once again lean on its global and end-market diversification to report strong results. Although there are still not signs of a recovery in the U.S. machinery industry, demand trends remain solid across most emerging markets.72043Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72000cs/72000norm UPS #Q##: Less Pessimism for #H##, More Optimism for FY## Domestic volumes continue to decline, while at the same time customers are shifting to less premium services. Despite the shift in priorities and unfavorable impact on mix,...72000965YesC0Article71corp95368Earnings Reports - Industrials/Consumer7/22/2008 9:11:45 PM150UPS reported 2Q08 results evidenced the familiar challenges in the transportation sector, but also emphasised the stabilizing pricing environment and the benefits from its strong global positioning.72000Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72016cs/72016norm Earnings Note: XTO Energy Q### Ahead - More Acquisitions XTO Energy (XTO; Baa#/BBB) reported recurring Q### earnings $### million, or $#.##/share, beating consensus of $#.##/share and rising ##% QoQ and ##% YoY.  LTM CFFO was $#.# billion...72016781YesC0Article1991corp156033Capital Structure65Earnings Reports - Energy7/22/2008 9:11:45 PM150XTO reported recurring Q208 earnings $553 million, or $1.07/share, beating consensus of $1.05/share and rising 19% QoQ and 28% YoY.72016Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/72029cs/72029norm Earnings Note: Dupont #Q## - Crops Provide Fertile Growth DuPont reported #Q## revenues of $#.## billion and adjusted EBITDA of $#.## billion, an increase of ##% and #%, respectively, from the prior year quarter.    While the company...720292198YesD0Article148corp1568Earnings Reports - Industrials/Consumer7/22/2008 9:11:45 PM150While the U.S. slowdown and cost inflation remained thorns on DD's side in 2Q08, operating earnings continued to be buffered by ongoing cost cuts (200bps margin increase) and robust growth in agriculture and emerging markets.72029Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71995cs/71995norm SunTrust: #Q## Beats - Cashing in on Coca-Cola SunTrust beat consensus estimates Several transactions to monetize Coke stake completed Credit quality weaker as residential real estate drives NPAs Dividend level maintained Tier #...719952796YesD0Article330corp4233Capital Structure67Earnings Reports - Financials7/22/2008 4:11:43 PM150SunTrust Banks reported EPS beat consensus. Negative drivers were weaker credit quality, and more securities write-downs. Capital plans include boost from Coca-Cola stake.71995Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71996cs/71996norm Wachovia: #Q## Major Miss - Super-CEO Meets Mortgage Kryptonite Wachovia's missed consensus by a wide margin, posting a sizable net loss on a $# billion goodwill write-down Provisions ramped up by $#.#+ billion sequentially to deal...719963787YesD0Article352corp3033Capital Structure67Earnings Reports - Financials32Mortgages7/22/2008 4:11:00 PM150Wachovia's results missed consensus, driven by goodwill write-offs and weaker credit quality. Slashes dividend again. Both Moody's and S&P downgrade to A+.71996Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71999cs/71999norm Assured & FSA: The Implications of No AAA Muni Capacity Late Monday evening, Moody's announced that it may downgrade Assured Guaranty and Financial Security Assurance. Assured and FSA have been the only two monoline financial guarantors...If Assured and FSA lose their AAA ratings, it would leave the newly established Berkshire Hathaway Assurance as the sole AAA guarantor in the market, likely leading to a near term decline in municipal issuance and higher interest costs.719992244YesD0Article212812782127corp3298Monolines7/22/2008 4:11:00 PM15071999Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71957cs/71957norm Utilities First Half Review, Part II: High Grade Overweights We maintained our overweight on the sector in the first part of our first half review In Part II, we discuss our individual high grade overweights We are still dividing...719572206YesD8BondScorebscore/researchcorp227BondScore21Sector Outlooks26BondScore: Company/Industry7/22/2008 10:14:42 AM250We continue our half-year discussion. In this piece, we discuss our individual high grade overweights and still divide our overweights into defensive and those with potential to outperform. We remain overweight the utility sector.71957Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71955cs/71955norm XM Aims To Fire A Credit Bunker Buster XM Satellite Radio started a refinancing campaign to address the debt that will need to be redeemed if its planned merger with Sirius goes through The company pre-released second quarter subscriber...719551247YesD0Article15791588corphy1333Capital Structure42High Yield7/22/2008 2:12:37 AM150After obtaining waivers of some of its change of control puts, XM Satellite Radio launched financing for the remaining puts that will be triggered if XM merges with Sirius. A pre-release should help as headline metrics were good in 2Q08.71955Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71966cs/71966norm Interpublic Banks On Banks Interpublic arranged a new three-year revolving loan that normalizes its bank financing arrangements Despite Interpublic's current debt ratings, the credit facility is unsecured, suggesting the banks see...71966773YesC0Article1157corphy1333Capital Structure96Loan Market42High Yield7/22/2008 2:12:37 AM150Interpublic returned to the bank market after its restructuring triggered a hiatus. The company managed to arrange an unsecured three-year loan at a fairly tight spread, but it will have to live with restrictive covenants.71966Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71975cs/71975norm American Express: #Q Misses - Growth Going Sour as Losses Ramp American Express fell short of expectations and abandoned its previous #-#% EPS growth forecast as credit quality pressures have mounted, particularly in June The company...719751811YesD0Article401corp3333Capital Structure67Earnings Reports - Financials7/22/2008 2:12:37 AM150AmEx fell short as credit losses escalated in June, forcing the company to abandon previous EPS guidance. Growth came at a price and current spreads do not reflect the level of credit uncertainty in the story71975Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71791cs/71791norm Subprime Pool Performance Update: Have Delinquencies Peaked? The number of delinquent mortgages, as a proportion of the original trust pool, has started to fall in the ####-vintage RMBS and has at least stabilized in the #### and ####...717912005YesD0Articlestrategy2991Subprime83Strategy Structured Products32Mortgages7/22/2008 2:12:00 AM150In our review of subprime pool performance, we find signs that delinquencies in the 2005- through 2007-vintage RMBS have started to stabilize or even fall and that defaults also appear to be falling in the 2005 deals.71791Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71972cs/71972norm Relative Value in Industrial Packaging Markets: June #### We review the latest industrial packaging data with an emphasis on the recently implemented $## per ton price hike, as well as the supply outlook. Additionally, we focus on...719722098YesD0Article116313426111378639911769207381001corphy1642High Yield54Euro Markets Issuers7/22/2008 2:12:00 AM150Box shipments in June declined 3.5% on an average week basis, comparing negatively to flat shipment data in May but favorably to April's decline of roughly 7.6%.71972Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71981cs/71981norm Texas Instruments #Q##: Below Guidance, Remain Cautious Texas Instruments' #Q## revenue and EPS were at the lower end of its prior guidance. The company cited distributor revenue and wireless as two major sources of weakness. The...719811396YesD0Article5corp11866Earnings Reports - TMT7/22/2008 12:12:36 AM150On July 21, Texas Instruments reported worse than expected 2Q08 results. In this article, we comment on the results.71981Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71959cs/71959norm A Look at the Results of the Canadian Spectrum Auction Industry Canada concluded its much anticipated AWS (and other) spectrum auction, in which total bidding came to C$#,### million, resulting in a price of C$#.##/MHz*POP for the AWS...719591605YesD0Article2120194821218679447762119corphy22519303G/Wireless Technology33Capital Structure42High Yield7/21/2008 11:12:00 PM150Industry Canada concluded its much anticipated AWS (and other) spectrum auction, and here we look at the results and comment on the investment implications.71959Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71924cs/71924norm Gaming the Ratings - Rating Agency Hacks At the Sector In its recent negative rating assessments, Moody's cited deteriorating operating conditions, high levels of capex, and significant leverage as the reasons for its negative actions.  ...719241412YesD0Article186457017321935211819761733510529614corphy1142High Yield7/21/2008 10:12:04 PM150We discuss the recent negative credit rating assessments in the Gaming sector, and review the potential further rating risks among credits in both Gaming and Lodging.71924Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71695cs/71695norm Spectrum Brands #Q## Tearsheet SPC's failed acquisition strategy continues to haunt the company as overall operating performance remains weak and leverage levels remain high. Unable to successfully integrate its second-tier and disparate...71695654YesC21Tearsheet2040tearsheets/premium67/21/2008 6:10:03 PM15071695Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71940cs/71940norm Oil & Gas Capital Structure Update - #/##/#### An up-to-date, comprehensive view of CreditSights' Oil & Gas capital structure research, including: recent reports, earnings expectations, credit ratings, valuation comparisons, and performance...719401101YesD0Articlecorp156033Capital Structure42High Yield7/21/2008 5:12:03 PM150An up-to-date, comprehensive view of CreditSights' Oil & Gas capital structure research, including: recent reports, earnings expectations, credit ratings, valuation comparisons, and performance comparisons.71940Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71945cs/71945norm Fortum #H## Tearsheet Fortum's credit rating is underpinned by its strong position as one of the leading integrated Nordic utilities.The company has been seeking to acquire Russian assets for several years and recently bought TGC-##...71945637YesC21Tearsheet1498tearsheets/premium387/21/2008 4:10:02 PM15071945Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71941cs/71941norm Research Overview: As of July ## A summary of trading views from our research of the latest week. Focus on A#A, British Energy, Constellation Energy, Crown Holdings, Delhaize Group, Fortum, Gaming Sector, Gannett, Health Management...719415229YesD0Articlecorpstrategy9Research Overview7/21/2008 3:12:02 PM150A summary of trading views from our research of the latest week.71941Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71938cs/71938norm Bank of America: #Q## Beats - Constructive on Destructives BofA beats as margins expanded and "hot stove" markdowns were less Banking environment remains difficult, but BAC not as dire as others  Credit losses driven by real estate...719384408YesD0Article405238corp303133Capital Structure54Euro Markets Issuers32Mortgages67Earnings Reports - Financials49M&A Activity7/21/2008 2:12:01 PM150BofA beat estimates on better margins/spread income, lower CDO markdowns, and lower provisions. Exposure to consumer credit still a concern but overall constructive on economy rebounding in early 2009. Countrywide should be accretive in '0871938Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71944cs/71944norm US Spreads: Week Ended July ##, #### The pressure on credit markets continued with the latest steps to alleviate the crisis at the GSEs provided no one shot panacea to ease the pain. Once again the OAS on the Merrill Lynch US Corporate...71944276YesC0Articlestrategy78Strategy US Spreads7/21/2008 1:12:00 PM15071944Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71947cs/71947norm CDX & iTraxx Spreads: Week Ended July ##, #### The CDX IG tightened #.# bp to ###.# bp. Spreads on the iTraxx tightened #.# bp to ## bp. CDX XO index traded #.# bp wider to ### bp, while spreads on the iTraxx Xover tightened ##.# bp...71947117YesB0Articlecorpstrategy417077Strategy CDX/iTraxx Spreads7/21/2008 1:12:00 PM150Latest weekly spread data and charts for the CDS indices.71947Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71948cs/71948norm Euro Spreads: Week Ended July ##, #### Euro high grade bond spreads widened # bp over swaps and # bp over governments to ### and ### bp respectively. Non-financial bond spreads widened # bp over swaps and tightened # bp over governments....71948141YesB0Articlecorpstrategy417079Strategy Euro Spreads7/21/2008 1:12:00 PM150Latest weekly spread data and charts for the euro-denominated market.71948Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71949cs/71949norm Sterling Spreads: Week Ended July ##, #### Sterling high grade bond spreads were unchanged over governments at ### bp and widened # bp to ### bp over swaps. High yield sterling bonds tightened ## bp over governments to ### bp and ##...80Strategy Sterling Spreads7/21/2008 1:12:00 PM150Latest weekly spread data and charts for the sterling-denominated market.7071949112YesB0Articlecorpstrategy4171949Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71906cs/71906norm Continental Airlines #Q## Tearsheet CAL was the first domestic airline to increase international capacity, with Atlantic growth over ##% since ####. Its Newark hub is the premier Atlantic gateway, and the only NYC airport with an entire...71906519YesC21Tearsheet106tearsheets/premium347/21/2008 12:11:59 PM15071906Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71909cs/71909norm Not The Answer: The EC ##% Holding Requirement Proposal The goal of the ##% requirement appears to be instilling tougher lending practices by making it more difficult for banks to syndicate risk via structured finance products. The...719091094YesD0Articlestrategy412975Global Liquidity96Loan Market14Regulatory Matters7/21/2008 2:11:54 AM150The EC has proposed a sweeping regulation that would preclude European banks and insurance companies from investing in numerous credit assets unless the originator maintains at least a 10% pari passu risk position.71909Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71830cs/71830norm CDS and Bonds - Differing Interests for the Same Basis Trade Credit default swaps and bondholders do not enjoy the same levels of protection owing to the construct of CDS contracts Some manner of funding hurdles can be overcome with...81Derivatives And Indices7/21/2008 1:11:00 AM150We examine the differing economic interests of bondholders and CDS and discuss ways to exploit these differences within basis packages718303160YesD0Articlestrategy12933Capital Structure51LBO90Covenants71830Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71910cs/71910norm Airlines June #### Traffic Review - Atlantic Bubble Bursting? Atlantic PRASM growth ground to a halt-only one data point but in a very important sector. LatAm continues with strong financial growth, driven by both yield and load factor. ...71910657YesC0Article114510971594107142511429310697corphy3442High Yield7/21/2008 12:13:53 AM150Storm clouds over the Atlantic.71910Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71911cs/71911norm IAC/Interactive's More Tender Intentions IAC/Interactive agreed to pay a higher price to take out its main bond issue than its earlier low-ball tender price A group of bondholders has agreed to take $### million of bonds of Interval...71911982YesC0Article2159216016622158corp1333Capital Structure7/21/2008 12:13:53 AM150Bondholders won a better tender price for IAC/Interactive bonds. A group of bondholders also agreed to exchange some of their notes for bonds of Interval in a move that is intended to establish Interval as the successor on IACI's CDS.71911Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71893cs/71893norm Schlumberger #Q## Results Beat as Drilling Activity Remains Robust Schlumberger (SLB; A#/A+) kicked off the #Q## earnings season with solid results, reporting recurring earnings of $#.# billion, or $#.##/share, coming in slightly ahead...718931227YesD0Article1325corp156033Capital Structure65Earnings Reports - Energy54Euro Markets Issuers7/21/2008 12:13:52 AM150Schlumberger (SLB; A1/A+) kicked off the 2Q08 earnings season with solid results, reporting recurring earnings of $1.4 billion, or $1.15/share, coming in slightly ahead of consensus estimates of $1.13/share.71893Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71895cs/71895norm FinMovers: First Blush on #Q## U.S. Bank Earnings Global financial services were mostly higher on rebounding strength in the U.S. and Europe  First Blush on #Q## earnings season: U.S. banks kicked off #Q## earnings season. Key drivers...718959116YesD0Articlecorp4945523228304233317445143467650544060Financial Movers7/21/2008 12:13:52 AM150Global financial services were higher on rebounding strength in the U.S. and Europe. We provide our first blush impressions of 2Q08 bank earnings season.71895Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71905cs/71905norm Euro Financial Movers: Playing Follow-My-Leader Bank and insurance stocks in Europe were well up on the week Most banks were caught up in the positive momentum from the US, rather than reporting any very positive news of their own...7/21/2008 12:13:52 AM150Positive momentum from the US pulled many European financials along with it. As earnings season picks up, the Europeans could start setting more of their own agenda. Asset quality data from Spain will be worth watching.719051170YesD0Article7979753666093563593711398212935536565535712241199corp19241937278100186354071905Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71907cs/71907norm Ambac and MBIA: Can the Subsidiary Strategy Work? While both companies are facing a myriad of problems, this note will focus on our arguments why Ambac and MBIA's recapitalized subsidiary strategies are unlikely to work In our opinion...719071542D0Article15781639corp3298Monolines7/21/2008 12:13:00 AM150While both companies are facing a myriad of problems, this note will focus on our arguments why Ambac and MBIA's recapitalized subsidiary strategies are unlikely to work.Yes71907Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71898cs/71898norm CreditSights: Top Articles Read (July ##) Fannie/Freddie Follow-up: Weighing Scenarios - Debt Default Unrealistic GSEs: Fannie and Freddie Under Fire - Where Do Bondholders Stand? GSEs: Paulson Presents; Congress Criticizes; Ackman...718981555YesD0Articleopen/topreadmc/othercorp7/18/2008 2:13:29 PM150Top CreditSights article hits from July 12 - July 18.71898Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71891cs/71891norm Citigroup: #Q## Beats - Takes a Credit Licking and Keeps on Ticking Citigroup beat consensus estimates with a smaller than expected loss Key driver of loss remains large markdowns on CDOs, monoline exposure Credit quality trends continue...718914031YesD0Article419corp313032Mortgages33Capital Structure67Earnings Reports - Financials54Euro Markets Issuers98Monolines7/18/2008 1:11:45 PM150Citigroup reported a smaller than expected loss as write-downs of risky assets and monoline hedges declined. Some progress on strategic plan to reduce non-core assets, geographies. Net interest margin gets boost from lower funding cost71891Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71888cs/71888norm CreditSights: Weekend Reader (July ##) Our Weekend Reader is a compilation of all CreditSights articles published from July ## - July ##. The Weekend Reader is divided into Strategy, BondScore, Corporate Developments, Spreadsheets,...718884447YesD0Articleopen/weekendreadmc/other7/18/2008 12:13:32 PM150CreditSights articles published from July 12 - July 18.71888Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71447cs/71447norm Target #Q## Tearsheet TGT enjoyed a long run of success in up-market discount retailing by offering fashion-friendly merchandise but has recently felt the pinch of a budget-conscious consumer .Margins have come under pressure, particularly...71447524YesC21Tearsheet91tearsheets/premium177/18/2008 8:15:46 AM15071447Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71875cs/71875norm Danaher #Q## Tearsheet DHR's ratings are supported by its strong and steady free cash flow generation, product diversity, wide end market reach along with limited shareholder enhancing activities. Acquisitions are integral to DHR's...653YesC21Tearsheet133tearsheets/premium47/18/2008 8:15:46 AM1507187571875Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71876cs/71876norm IBM: #Q## Results-Buoyancy in a Sea of IT Cross Currents IBM announced #Q## net income of $#.# billion or EPS of $#.##, an increase of ##% y-o-y on revenue of $##.# billion.  The results exceeded Street consensus of $#.## per share...718761600YesD0Article213corp1866Earnings Reports - TMT54Euro Markets Issuers7/18/2008 7:10:41 AM150IBM reported 2Q08 results which exceeded expectations. However due to weaker results at Google and Microsoft, IBM stock was down after hours. While IBM remains confident about the outlook, the direction of IT spending remains uncertain.71876Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71880cs/71880norm Euro Markets Weekend Reader (July ##) Our Euro Markets Weekend Reader is a compilation of all CreditSights articles published to the Euro Markets page from ## July - ## July. The Weekend Reader is divided into European Finance, European...CreditSights articles published from July 12 - July 187/18/2008 7:10:00 AM150718802316YesD0Articlemc/othereurope/mc/other71880Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71825cs/71825norm The Bank of New York Mellon: #Q## Core Beats - Hit by SILO Charge, Securities Losses The Bank of New York Mellon missed consensus by $#.## Excluding SILO charge ($#.##), and investment securities mark, and credit monitor expense ($#.##),...718251776YesD0Article336corp744267Earnings Reports - Financials33Capital Structure7/18/2008 1:11:30 AM150BNY Mellon beat consensus on a core basis, as overall performance held up in volatile market. Some unrealized losses on securities and sale-in, lease-out charge drag results.71825Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71837cs/71837norm Nucor: #Q## Results - Non-Residential Concern Nucor's #Q## sales increased ##% YoY to $#.## billion, while adjusted EBITDA rose ##% to $#.## billion.  Volumes in the larger Steel segment were up ##% YoY to #.## million tons, as all...718371793YesD0Article67corp1468Earnings Reports - Industrials/Consumer7/18/2008 1:11:30 AM150Steel remained mostly solid during 2Q08, but early signs of demand weakness in the non-residential sector are beginning to appear, creating some cause for concern.71837Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71842cs/71842norm IGT: Fiscal #Q## Results- Gamblers, Casinos Trim Their Spending In what will likely be a theme throughout earnings season, IGT lowered its earnings guidance for the upcoming year as quarterly EPS expectations was reduced to a range...corp1168Earnings Reports - Industrials/Consumer7/18/2008 1:11:30 AM150Despite problems in the operational outlook, IGT remains a strong generator of cash flow and maintains a stable financial policy.718421200YesD0Article198771842Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71870cs/71870norm Earnings Note: Safeway #Q## - Feeding the Bottom-Line SWY reported a #.#% increase in total sales to $##.# billion and a solid #.#% gain in adjusted EBITDA to $### million. Excluding fuel sales and the negative impact of the Easter...718701112YesD0Article231corp1768Earnings Reports - Industrials/Consumer7/18/2008 1:11:30 AM150SWY turned in a mixed performance that was light on sales but healthy on profits. Weak sales are concerning, but certainly not isolated to SWY. With heavy cost savings projected and price investments on the way, SWY is in solid shape.71870Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71871cs/71871norm Continental Airlines #Q## - Behind the Fuel Curve Revenue growth only covered ##% of fuel and other operating expense increases. CAL raised $### million cash from a wide variety of sources. Equity strength is misguided given the widening...1174YesD0Article106corphy3442High Yield68Earnings Reports - Industrials/Consumer33Capital Structure7/18/2008 1:11:30 AM150Recent equity market strength ignores the widening disconnect between fuel and fare increases.7187171871Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71821cs/71821norm CIT Group: #Q## Core Beats - Getting Fit for the Funding Fight CIT's outsized headline loss was driven by the loss on sale for its home lending franchise, while its core commercial businesses exceeded expectations Lower charge-offs...718211946YesD0Article300corp3367Earnings Reports - Financials54Euro Markets Issuers7/18/2008 1:11:00 AM150CIT's core results topped expectations as the company has effectively shaped itself back to core commercial finance play, while funding and asset quality challenges remain71821Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71867cs/71867norm Earnings Recap: KO and CCE #Q## - North America Fizzles KO reported a ##.#% increase in total sales to $#.# billion in #Q## from higher concentrate sales (+#%), improved price/mix (+#%), bottler acquisition and structural effects (+#%),...corp86968Earnings Reports - Industrials/Consumer7/18/2008 12:11:30 AM150KO and CCE each reported 2Q08 earnings results that highlighted a rapid deterioration in the North American beverage industry and continued strength in the international markets.718672346YesD0Article19019171867Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71551cs/71551norm #H## Structured Credit Review - Issuance and Returns In the first quarter, synthetic CDO issuance totalled just $## billion nearly ## times less than that seen in the first quarter of ####. However, protection selling on index tranches...715511627YesD0Articlestrategy70294183Strategy Structured Products56Strategy Monthly Reviews81Derivatives And Indices61CDOs7/17/2008 11:12:52 PM150In our reveiw of synthetic and cash flow CDO issuance we find that both are hugely down on H1 2007. However, activity in the tranched tradable indices remains strong, especially in the highest rated tranches.71551Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71804cs/71804norm Sector Weightings Update: Transportation We continue with our Underweight Airline equity recommendation given the risk of airline demand elasticity against a backdrop of domestic economic weakness.  The positive outlook for existing...718041188YesD0Articlestrategy212934945Sector Weightings7/17/2008 11:12:52 PM150The transportation sector is struggling with softening economic growth and stratospheric fuel prices but there are pockets of strength that mitigate the headwinds.71804Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71824cs/71824norm Chesapeake Energy: New Financial Plan Provides Path to Balance Sheet Strength Chesapeake Energy (CHK; Ba#/BB) provided an updated financial plan, which investors have been eagerly awaiting following the company's recent $#.# billion...718241537YesD0Article1046corphy156033Capital Structure42High Yield7/17/2008 11:12:52 PM150CHK provided an updated financial plan, which investors have been eagerly awaiting, and we believe it provides a path to significant balance sheet improvement and strength over the course of the next three years.71824Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71862cs/71862norm Johnson Controls #Q##: High-Quality Earnings and Solid Financial Profile Johnson Control yet again delivered very solid results on the backdrop of a softening economy and severe declines in the NA automotive production environment and...718621582YesD0Article503corp2468Earnings Reports - Industrials/Consumer7/17/2008 11:12:52 PM150JCI's solid results highlight the diversity of its business portfolio, which still has strong underlying growth fundamentals. Improving balance sheet and strong FCF provides flexibility to pursue growth strategies in a balanced fashion.71862Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71801cs/71801norm Housing Weekly Monitor: Huff and Puff, Blow Your House Down The current slide in home prices has been the correction mechanism to hopefully clear oversupply caused by years of euphoric building by the homebuilding sector.  Of course,...718013764YesD0Article1141501502572539571819568567507574corphy342High Yield69Housing Weekly Monitor7/17/2008 11:12:00 PM150We update economic and financial indicators for the housing market, as well as equity and debt performance, to aid further analysis and provide a more complete overview of the sector. This week we examine June construction activity.71801Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71808cs/71808norm Nokia #Q##: Margins the Highlight of the Quarter Nokia's #Q## results contained many more positives than negatives. The overall tone of the management discussions was clearly very positive. Devices & Services segment reported a revenue...718081999YesD0Article634corp71183666Earnings Reports - TMT7/17/2008 11:12:00 PM150On July 17, Nokia reported solid 2Q08 earnings highlighted by margin improvements. In this article, we comment on the results in detail.71808Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71844cs/71844norm Fortum: #H## - Generation Delivers, Markets Drag Fortum reported reasonable #H## results in our view with comparable operating profit rising by ##% to €### million. This was slightly below a consensus of around £# billion. Operating...718441744YesD0Article1498corp713865Earnings Reports - Energy7/17/2008 11:12:00 PM150Higher power prices drive strong generation results but numbers are held back by weak results from liberalised sales and a seasonal loss in Russia.71844Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71847cs/71847norm Merrill Lynch: #Q## Miss - Bye Bye Bloomberg, Hello Iceberg? Merrill Lynch misses consensus, four consecutive quarters in the red Write-downs across various "hot stove" risky asset categories were exacerbated  by negative valuation...32Mortgages33Capital Structure98Monolines54Euro Markets Issuers67Earnings Reports - Financials7/17/2008 11:12:00 PM150Merrill reported a wider than expected loss as it had additional write-downs against risky asset exposures and hedges with troubled monoline counterparties. Sells Bloomberg stake and agree to sell FDS to replenish capital following loss718472201YesD0Article417corp3171847Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71816cs/71816norm BB&T: #Q## Meets - Credit Worse but Still One of the Better Regionals BB&T's met consensus estimates Credit quality worsened, particularly residential construction, but remained in acceptable range Dividend raised by a penny, capital...71816207067Earnings Reports - Financials26BondScore: Company/Industry7BondScore7/17/2008 10:10:53 PM250BB&T's 2Q08 earnings matched consensus, as higher loan loss provisions more than offset higher revenues. No capital raising plans, as ratios should stay above well-capitalized and dividend increased by a penny.33Capital StructureYesD8BondScore341corp4232Mortgages71816Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71807cs/71807norm Fresenius SE: APP-Acquisition Finance, Phase-# Exchangeable €### million bond is first component of APP-acquisition financing. A capital increase of €### million could follow Residual funding requirement estimated at €#.#...718071231YesD0Article2137corphy104842High Yield54Euro Markets Issuers7/17/2008 10:10:00 PM150The new exchangeable bond indicates residual acquisition-funding could add 75% debt at "SE" level. Bond spreads are likely to remain soft until reassured that new debt will not have preferential indenture.71807Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71838cs/71838norm Capital One: #Q## Miss -Not Bad for Now, But Outlook Still Cloudy Capital One's earnings missed consensus Reviews possible impact of FASB rules on consolidation and Fed rules on credit card lending U.S. cards posted higher delinquencies...718382371YesD8BondScore403corp3367Earnings Reports - Financials7BondScore26BondScore: Company/Industry33Capital Structure7/17/2008 9:11:05 PM250Capital One missed consensus, on softer revenue trends. Cards showed weaker credit quality and charge-offs expected to rise further in 2H08. Liquidity and capital position reviewed.71838Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71843cs/71843norm Earnings Note: PPG #Q## - SigmaKalon Cushion PPG Industries reported #Q## sales of $#.## billion and adjusted EBITDA of $### million, an increase of ##% and ##%, respectively, from the prior year figures.    The bulk of the top-line...718431609YesD0Article150corp1568Earnings Reports - Industrials/Consumer7/17/2008 9:11:05 PM150The integration efforts of SigmaKalon appear to paying dividends, with the company already realizing $20-40 million of raw material cost relief due to its enhanced purchase power and on target to cut $50 million in cost in the year.71843Credit & Investment ResearchCreditSightshttp://www.alacrastore.com/storecontent/cs/71813cs/71813norm MGIC Investment #Q##: A Likely Survivor MGIC Investment reported a second quarter net loss of $## million or $#.## per share; consensus estimates had called for the company to post a loss of about $#.## per share. While losses and...718131942YesD0Article2060corp3267Earnings Reports - Financials7/17/2008 9:11:04 PM150We feel that MGIC is likely to remain under pressure for the balance of the year though the company is in a stronger position than many of its peers and may be one of the few mortgage insurers to survive the current shakeout.71813Credit & Investment ResearchCreditSights