Anonymous ID: 1db9c7 Feb. 14, 2020, 9:09 a.m. No.8134700   🗄️.is 🔗kun

Kraft Heinz's credit rating (debt) cut to 'junk' by Fitch

 

Kraft Heinz Co’s debt rating was cut to “junk” by global credit ratings agency Fitch on Friday, a day after the ketchup and sausage maker reported lower-than-expected quarterly sales and wrote down the value of some businesses. Shares of Kraft Heinz, in which billionaire Warren Buffett’s Berkshire Hathaway Inc. and Brazilian private equity firm 3G own major stakes, fell about 4%. Kraft Heinz said on a post-earnings call on Thursday that currency fluctuations, divestitures, supply chain costs and bonuses related to the turnaround would likely lead to a decline of about $460 million in full-year earnings before interest, taxes, depreciation and amortization (EBITDA). Fitch lowered its long-term rating on the company to ‘BB+’ from ‘BBB-‘, but kept its outlook at stable.

 

BB level, or "junk", rating for companies is seen as having higher risk to lenders. Separately, Moody's also revised its rating outlook to "negative" from "stable", saying it expects falling operating performance and high debt levels to continue through 2020. As of August, Kraft Heinz is rated “BBB-“ by S&P, the lowest investment-grade rating. At least eight Wall Street analysts lowered their price targets on the stock after the company reported disappointing results.

https://www.reuters.com/article/us-kraft-heinz-ratings-fitch/kraft-heinzs-credit-rating-cut-to-junk-by-fitch-idUSKBN20823O

Anonymous ID: 1db9c7 Feb. 14, 2020, 9:19 a.m. No.8134821   🗄️.is 🔗kun

China's top diplomat to visit Japan ahead of Xi's state trip

 

China's top diplomat will travel to Tokyo this month to discuss whether Chinese President Xi Jinping will go ahead with a state visit to Japan as planned in light of the coronavirus outbreak.

 

Yang Jiechi, state councilor and a member of the Chinese Communist Party Politburo, will meet with Japanese National Security Council head Shigeru Kitamura and Japanese Prime Minister Shinzo Abe during his visit from Feb. 28 to Feb. 29. Yang last went to Japan in June for the Group of 20 summit.

 

Xi is scheduled to visit Japan in April after the National People's Congress, which begins on March 5. But there are some government and party officials in China who question whether to hold the congress, saying they worry that bringing regional leaders to Beijing for an extended period of time could hamper efforts to contain the virus.

 

Others are against postponing the annual congress. China held the NPC as planned during the height of the severe acute respiratory syndrome, or SARS, outbreak from 2002 to 2003. The Xi leadership is eager to strengthen ties with Japan amid protracted tensions with the U.S., and wants the state visit to go as planned. But Xi may be forced to delay the trip if the NPC is postponed.

 

Tokyo is also invested in Xi's trip, since it would be a sign that Beijing values their bilateral relationship. "We will steadily prepare for President Xi to come to Japan as scheduled this spring," Japanese Chief Cabinet Secretary Yoshihide Suga said Friday. "We do not expect the Japanese side to ask for a delay."

https://asia.nikkei.com/Politics/International-relations/China-s-top-diplomat-to-visit-Japan-ahead-of-Xi-s-state-trip