Howie Hubler's Ghost is still haunting Morgan Stanley it seems... 3 Trillion in BBB just waiting to be downgraded, with complete annihilation of Credit Markets issuing, Moody's fine for this recession should well exceed 1 Billion for allowing monkey business of this level... I wonder what the Q-10's for last quarter will reveal once they are available, I can only assume what Q1 2019 bonds results will be ?
Campbell Soup Co. The company borrowed more than $6 billion in 2018 to buy Snyder’s-Lance Inc., the maker of pretzels and other snacks. The acquisition more than doubled the company’s debt load to nearly $10 billion, according to data compiled by Bloomberg. The company now has more than 5 times as much debt as earnings before interest, taxes, depreciation and amortization, a measure known as Ebitda, according to Moody’s.
While ratings firms evaluate a number of criteria, a company with leverage that high would be considered junk if judged on that metric alone. For example, two Campbell Soup competitors, Pinnacle Foods Inc. and Lamb Weston Holdings Inc., have lower leverage and are rated below investment-grade. But Moody’s and S&P kept Campbell at investment-grade, saying they expected the merged food company to generate enough revenue to pay down its debt quickly.
Campbell’s plan to cut debt was cast into doubt shortly after the deal closed. In May 2018, the soup maker’s chief executive officer unexpectedly resigned, and the company forecast earnings well below analyst expectations. Facing a potential downgrade to junk, the company said it would pay down debt by selling assets it had spent years acquiring, including its international unit and its fresh-food business.
https://www.bloomberg.com/graphics/2018-almost-junk-credit-ratings/
https://www.bnnbloomberg.ca/morgan-stanley-has-a-warning-about-a-potential-bbb-bond-bust-1.1169584
Very important read, it shows SP and Moody's are in on this scam!
Campbell Soup Co. The company borrowed more than $6 billion in 2018 to buy Snyder’s-Lance Inc., the maker of pretzels and other snacks. The acquisition more than doubled the company’s debt load to nearly $10 billion, according to data compiled by Bloomberg. The company now has more than 5 times as much debt as earnings before interest, taxes, depreciation and amortization, a measure known as Ebitda, according to Moody’s.
While ratings firms evaluate a number of criteria, a company with leverage that high would be considered junk if judged on that metric alone. For example, two Campbell Soup competitors, Pinnacle Foods Inc. and Lamb Weston Holdings Inc., have lower leverage and are rated below investment-grade. But Moody’s and S&P kept Campbell at investment-grade, saying they expected the merged food company to generate enough revenue to pay down its debt quickly.
Campbell’s plan to cut debt was cast into doubt shortly after the deal closed. In May 2018, the soup maker’s chief executive officer unexpectedly resigned, and the company forecast earnings well below analyst expectations. Facing a potential downgrade to junk, the company said it would pay down debt by selling assets it had spent years acquiring, including its international unit and its fresh-food business.
https://www.bloomberg.com/graphics/2018-almost-junk-credit-ratings/
https://www.bnnbloomberg.ca/morgan-stanley-has-a-warning-about-a-potential-bbb-bond-bust-1.1169584
Very important read, it shows SP and Moody's are in on this scam!