...Fitch Ratings views AES's recent announcement of two transactions involving the China sovereign wealth fund China Investment Corporation, Inc. (CIC) as instrumental to accelerating investment rather than improving credit. The transactions consist of: a binding stock purchase agreement for CIC to buy $1.58 billion in new AES equity (approximately a 15% stake in the company) and a letter of intent to sell a 35% stake in AES' wind generation business for $571 million. The substantial new equity commitments permit AES to adopt an accelerated growth strategy and also support Fitch's current `B+' issuer default rating (IDR) for the company. Although cash proceeds could result in some temporary reduction in recourse debt at the parent level, the Rating Outlook remains Stable at this time. The sale of interest in the wind business is subject to due diligence and regulatory reviews; however, equity investment by the CIC is subject to regulatory reviews only, including review by the Committee on...
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| Report Type: | Newsletter
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| Company(ies): | Belo Corporation, Centennial Communications Corporation, Ford Motor Company, JohnsonDiversey Holdings Inc., Pioneer Natural Resources Company, The AES Corporation, Toys R Us, Inc., UCBH Holdings, Inc.
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| Ticker(s): | AES , BLC , F , PXD , UCBH
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| Issuer: | UCBH Holdings, Inc.
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| Free Sample: |
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| Format: | | PDF |  |
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