Latest news with #creditrating
Yahoo
13 hours ago
- Business
- Yahoo
Varex Imaging Corporation (VREX) Downgraded by S&P as Regulatory Outlook Remains Cloudy
S&P Global Ratings has downgraded its ratings on Varex Imaging Corporation (NASDAQ:VREX) because it believes the stock is surrounded by high levels of unpredictability and weaker credit metrics. Tariff drama has been lingering for quite some time now, and with uncertainty around policy implementation by the U.S. administration, the firm believes Varex's profitability and sales are under serious threat. A technician in a lab coat inspecting an X-ray imaging component. The slashing of the rating from 'B+' to 'BB-' also considers the refinancing risk of the company stemming from near-term maturities. With short-term capital structure, external factors, including capital market conditions and geopolitical risk, push the company into a vulnerable state. This isn't the first time the company has exhibited such performance. The credit assessor now expects a leverage above the downside threshold of 3.5x, with a free operating cash flow (FOCF) to debt below 12% for FY2025, much in line with last year's benchmark. No relief from the medical segment either, as the demand remains subdued. Despite the approval of a $1.4 trillion government stimulus package, the Chinese government is taking initiatives to support local vendors, putting further pressure on Varex Imaging Corporation (NASDAQ:VREX)'s sales. However, due to the company's competitive position and new contracts, S&P has extended a stable rating outlook. While we acknowledge the potential of VREX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VREX and that has 100x upside potential, check out our report about the READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure. None.
Yahoo
13 hours ago
- Business
- Yahoo
Maryland's credit downgrade can be blamed on actions in Washington, not Annapolis
Maryland maintained a AAA bond rating from Fitch and Standard & Poor's, but was downgraded to Aa1 by Moody's. (Maryland Matters file photo) In his coverage of the downgrade of Maryland's credit rating by Moody's from the coveted AAA to AA1, Bryan Sears pointed to Moody's acknowledgement of Maryland's 'wealthy and diverse economy,' solid financial planning and proactive management by officials, including slowing expenditures and raising new funds. But the report also noted that Maryland was particularly vulnerable to 'shifting Federal policies and employment' in comparison to other states with triple-A ratings: Delaware, Florida, Georgia, Missouri, North Carolina, Ohio, South Dakota, Tennessee, Texas, Utah and Virginia. In plain-speak, Maryland's administration was well equipped to handle any organic financial issues arising from budgetary deficits, and/or ambitiously funded programs. But our reliance on federal jobs meant that no one could foresee or plan for such eventualities. Maryland Matters welcomes guest commentary submissions at editor@ We suggest a 750-word limit and reserve the right to edit or reject submissions. We do not accept columns that are endorsements of candidates, and no longer accept submissions from elected officials or political candidates. Opinion pieces must be signed by at least one individual using their real name. We do not accept columns signed by an organization. Commentary writers must include a short bio and a photo for their bylines. Views of writers are their own. Among all the states with a triple-A rating, Maryland's economy is the only one which is dominated by the government sector. Being a small state and adjacent to the nation's capital, Maryland's largest source of income is income tax. Almost one in 10 Maryland workers is a federal employee. The only variable NOT in control of the state administration is the employment of federal workers. It isn't hard to see the connection. Republican delegates and senators who tout Moody's warnings about Maryland's rating prior to this current federal administration taking charge are forgetting that the programs with high price tags, like the Blueprint for Maryland's Future, were hit because of the COVID-19 economy. We barely had time to come up to the surface to take a breath of air before being submerged again by this second Trump administration! The GOP needs to take a hard look at themselves, and their blind obeisance to the walking body of malfeasance they regard as their president. Here is the bottom line: Moody's downgraded Maryland's credit rating because, despite the Moore administration's best efforts, they could not fix the damage done by DOGE and their dismantling of federal government. Maryland, D.C. and Virginia have the maximum number of federal employees – both Maryland and D.C. had their ratings downgraded. Virginia is a much larger state and has other economic avenues to offset the loss of federal jobs, even though it, too, has taken a substantial hit to its economy. Blame, if it is to be assigned, lies with the Trump administration and its hatchet approach to federal infrastructure. Believe me, the damage goes far beyond a credit rating — the United States will be feeling the effects of this sabotage for decades to come. Fitch has since released its ratings on Maryland, and Standard & Poor's followed on Wednesday. Maryland continued to maintain a triple-A ratings with both firms. So let's all take a deep breath, and return to resisting the illegal and unconstitutional actions of this federal administration.
Bloomberg
15 hours ago
- Business
- Bloomberg
Nigeria Upgraded to B3 by Moody's on Fiscal, Forex Gains
Nigeria 's sovereign credit was raised by Moody's Ratings, citing the removal of oil subsidies, a more flexible exchange rate and improvements in its fiscal status. The credit assessor upgraded Africa's largest oil producer's foreign currency debt to B3, six notches below investment grade, from Caa1. The outlook was changed to stable.
Bloomberg
20 hours ago
- Business
- Bloomberg
Moody's Cuts Brazil Outlook, Delivering Fiscal Warning to Lula
By , Giovanna Bellotti Azevedo, and Martha Viotti Beck Updated on Save Moody's Ratings lowered Brazil 's credit outlook to stable from positive, delivering a reproof to President Luiz Inacio Lula da Silva's government at a time when it is under increasing pressure to shore up the country's fiscal situation. The ratings firm, which upgraded the country in October, reaffirmed its Ba1 rating, one level below investment grade. But it cited expectations of larger fiscal deficits, slower progress in structural reforms and budget pressure from high interest rates to alter its overall outlook for Latin America's largest economy on Friday.
Reuters
a day ago
- Business
- Reuters
Moody's upgrades Nigeria's rating to 'B3' on better external and fiscal positions
May 31 (Reuters) - Credit ratings agency Moody's upgraded Nigeria's rating by a notch to "B3" from "Caa1" on Friday, citing significant improvements in the country's external and fiscal positions. Earlier this month, the World Bank said that Nigeria's economy achieved its fastest growth in about a decade in 2024, driven by a strong fourth quarter and an improved fiscal position. However, it warned that persistently high inflation remains a challenge. "The recent overhaul of Nigeria's foreign exchange management framework ... has markedly improved the balance of payments and bolstered the CBN's (Central Bank of Nigeria) foreign exchange reserves," Moody's said, opens new tab in a statement. According to Moody's, inflationary risks in Nigeria, driven by policy shifts, have diminished. Inflation and domestic borrowing costs are showing nascent signs of easing, bolstering confidence in the stability of these policy changes. The agency revised Nigeria's outlook to "stable" from "positive", as it expects recent progress on external and fiscal fronts to continue, though at a slower pace, if oil prices fall. "The stable outlook reflects our expectations that external and fiscal improvements will decelerate but will not reverse entirely," Moody's said.
