Business & Finance
Business and Finance
Business and Finance
Thu, June 24, 2010
Wed, June 23, 2010 PNC Financial, Grainger, Prudential Financial, Moodya?s and Foster Wheeler
CHICAGO--([ BUSINESS WIRE ])--Zacks.com Analyst Blog features: PNC Financial Services Group Inc. (NYSE: [ PNC ]), W.W. Grainger Inc. (NYSE: [ GWW ]), Prudential Financial Inc. (NYSE: [ PRU ]), Moodya™s Corp. (NYSE: [ MCO ]) and Foster Wheeler AG (Nasdaq: [ FWLT ]).
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Here are highlights from Tuesdaya™s Analyst Blog:
PNC Converts National City Branches
PNC Financial Services Group Inc. (NYSE: [ PNC ]) has accomplished the conversion of 1,300 branches and over 6 million customers from National City Bank to PNC Bank. The conversion, which is completed six months ahead of the companya™s schedule, has given PNC one of the largest branch distribution networks among the banks in the country.
PNC Financial completed the acquisition of National City Corporation, its eighth takeover in the past five years, on December 31, 2008 for approximately $6.1 billion. The conversion of branches was done in four phases during the last seven months. The acquisition has significantly increased the banka™s presence in Ohio, Kentucky, Indiana, Illinois, Pennsylvania, Michigan, Wisconsin, Missouri and Florida.
Grainger Enters JV with THF
W.W. Grainger Inc. (NYSE: [ GWW ]) entered into a joint venture with THF International SAS (aTHFa), an associate of Torhefe S.A., by acquiring substantially all of the assets of Torhefe. The new entity will be named aGrainger Colombiaa.
As per the agreement, the majority stake of 80% will be owned by Grainger while THF will hold the remaining 20%. The terms of the deal are yet to be disclosed.
The joint venture is in sync with Graingera™s history of making acquisitions. Some recent takeovers by Grainger are: K&D Pratt Industrial Division, a distributor of industrial and safety products acquired on November 28, 2009; Alliance Energy Solutions, a provider of energy efficient retrofits acquired on November 18, 2009; Imperial Supplies, LLC a distributor of maintenance and aftermarket components acquired on Oct 14, 2009; and Asia Pacific Brands, an electrical wholesale distributor acquired on June 2, 2009.
A.M. Best Rates Prudentiala™s Notes
The rating agency A.M. Best has conferred an aa-a on the recently issued $1 billion of senior notes by Prudential Financial Inc. (NYSE: [ PRU ]). The notes have been sold in two tiers: $650 million of 5.375% 10-year notes and $350 million of 6.625% 30-year bonds. The proceeds from the issue will be used for general corporate purposes, which may include contributions of capital to its insurance and other subsidiaries, the repayment of short-term borrowings or other debt, or potential strategic initiatives.
The rating agency takes into account the groupa™s diversified operations, which span across regions such as theUnited States, Asia, Europe and Latin America. Its wide product portfolio encompasses life insurance, annuities, mutual funds, pension- and retirement-related investments, administration and asset management, and securities brokerage services. The right mix of businesses with strong fundamentals and strong risk management capabilities have helped it garner a strong market position with greater business diversification, placing it in a competitive position.
The rating agency also acknowledges Prudentiala™s measures in bolstering its financial strength and flexibility through long-term debt and equity issue. It had raised approximately $4.4 billion in 2009, thereby strengthening its capitalization ratio and improving liquidity. The company has reduced debt by$16 billion over the past three years. Its leverage ratio rests below the industry average and reflects its inherent capital strength. Furthermore, interest coverage ratio is expected to improve gradually as operating conditions normalize.
The notes also carry an investment grade rating from other rating agencies such as Moodya™s Corp. (NYSE: [ MCO ]), S&P and Fitch, who have conferred aBaa2a, aAa and aBBBa ratings, respectively.
Foster Wheeler Wins Contract
Foster Wheeler AG (Nasdaq: [ FWLT ]) announced that a subsidiary of its Global Power Group has been awarded a contract by Sinopec Wuhan Company for the engineering, procurement and supply of three circulating fluidized-bed steam generators for the 800,000 ton/year ethylene project in central China's Wuhan city.
Foster Wheeler will design and supply the three 80 MWe (gross megawatt electric) steam generators and auxiliary equipment and provide consulting services for the project. The CFB steam generators will be designed to burn coal and petroleum coke while meeting all environmental requirements.
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