MNI BRIEF: Cuts Should Be Timely But Cautious - Buba's Nagel

MNI BRIEF: ECB Policy Decisions Based On Broad Analysis- Lane

MNI BRIEF: Less Than Half Canada Firms See Inflation Obstacle

MNI China Daily Summary: Monday, November 25

MNI: China CFETS Yuan Index Up 0.01% In Week of Nov 22

MNI: PBOC Net Injects CNY76.7 Bln via OMO Monday

EZ/UK T-Bill Calendar: 2/3-Month ATB Auction on Tuesday

MNI: BELGIUM NOV BNB BUSINESS SURVEY -11.1

EZ/UK Bond Supply Calendar: Gilt Syndi; IT, DE Due on Tuesday

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Fitch Downgrades Bayer (expected)

HEALTHCARE

Fitch downgrade puts it on par with S&P/Moody's. Like S&P, Fitch has left it on outlook Stable. Moody's key one to watch/lowest rated preceding the large lawsuit loss this year. We see it staying unch on Baa2 Neg.

  • Fitch has assumed Bayer's full provisioned €5.7b to be used for Roundup lawsuits to 2027 (as reminder S&P earlier this week assumed €1.5-2b/yr for near term).
  • It also flags legacy PCB lawsuits (see here; https://www.bayer.com/en/resolving-us-pcb-litigation) as a risk given not provisioned for.
  • Emphasises downward rating risk on litigation costs that come higher than provisions - nothing new there - markets prices Bayer wide (~by 1 rating) for same reason.
  • Its also assumed no buybacks (till 2027), dividends to remain at current minimums (till 2026) & net annual acquisitions of €3.2b. . On acquisitions we assume Fitch means over entire period despite unclear wording.
€ cash lines are 1-3 tighter, in line with broader index,.
Credit BulletsBulletHomepagemarkets-real-timeCredit
Credit BulletsBulletHomepagemarkets-real-timeCredit

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.