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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.
TECHNOLOGY
- SAP curve is up to 3bps tighter having been upgraded by Moody’s from A2 to A1 yesterday afternoon. New Profile: A1[S]/A+[S].
- The upgrade comes on the back of SAP's cloud transition, market position and expected profitability rise post-2024 restructuring.
- The stable outlook reflects operational profit and cash flow resilience even in an economic downturn and considers possible bolt-on acquisitions of EUR ~1bn annually.
- Upgrade potential if SAP boosts revenue and cloud profits while staying financially prudent. Downgrade risk from higher leverage (>2x threshold) or growth slowdown.
- While the upgrade is supportive of spreads we note the tightness of the SAP curve to higher rated peers like Apple with EUR 29s here trading in a tight range vs. their Apple equivalent in recent months.
- At the same time, we note slight (~20bps) underperformance vs. lower-rated ASML since November in this segment with the ASML spread curve flat/inverted at the long end.
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.
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