On 27 August 2019, rating agency Standard & Poor’s lowered its ratings on AMP Limited and its debt securities. Despite the lower rating, with a prospect for a further downgrade within the next 12 months or so, we remain comfortable with the with the credit profile of the continuing operations.

Liberty Financial (Liberty) has mandated managers for a potential 3-4 year AUD denominated bond in either or both fixed and FRN format.

Westpac Banking Corporation - 3M BBSW + 1.98%

IMF recently released their FY19 results, with the company reporting a net loss after tax of AUD(36.1m). Despite the loss, a number of cases settled around the end of financial year or shortly thereafter, that are expected to be resolved in the coming months, generating revenue in excess of AUD110m.

CML recently released their FY19 results, with the company reporting an unaudited net profit after tax of AUD8.4m, up 164% on the prior corresponding period.

Resimac 2019-2 Class C Notes

Adani Abbot Point Terminal (AAPT) reported solid results for the full year ended 31 March 2019, increasing the amount of coal handled to 28.8 million tonnes over the course of the year. In FY19, AAPT reported EBITDA of AUD185.5m, slightly lower than FY18. Despite the lower EBITDA, the 12-month cash flow cover ratio reached 2.24x at FYE19 due to lower interest costs. We provide an update on our recommendations on AAPT's AUD notes due 2020 and USD notes due 2022.

REDS 2019-1 Class D Notes

We provide an update to noteholders on the progression of ongoing discussions with Lucas following our credit update dated 26 June 2019. Our recommendation on Lucas’ notes due 2022 remains unchanged.

New issue alert - Westpac launches Tier 2 Subordinated Bond

Merredin Energy reported 4Q19 and FY19 results were in line with our forecasts, reflecting the predictability of Merredin Energy’s cash flows. Revenues for the quarter and full year came in at AUD2.8m and AUD10.8m, respectively. Merredin Energy reported EBITDA of AUD2.2m in 4Q19 and AUD8.3m for FY19, both marginally ahead of our forecasts. We maintain our recommendation on Merredin Energy’s notes due 2022

On 15 August 2019, SYD reported robust first half results for the period ended 30 June 2019. Revenues for the period were AUD797.1m, a 3.4% increase on the prior corresponding period. EBITDA came in at AUD649.2m, a 4.1% increase on 1H18, primarily underpinned by in a 1.9% increase in international passenger numbers.

Moody’s downgrade its rating on Frontier Communications. The outlook on the rating remains negative.

On 6 August 2019, Dean Foods Company (Dean Foods, Company) announced soft 2Q19 results. Dean Foods reported accelerated declines in revenue, EBITDA and a net loss. Operational and industry headwinds continue to hamper the Company, which expects to be a net user of cash in FY19. We provide an update of Dean Foods' performance and the Company's prospects moving forward.

In this inaugural report on the performance of the Residential Mortgage Backed Securities (RMBS) sector, we review the current characteristics of a large number of RMBS where our clients have exposure.

On 9 August 2019, Axsesstoday’s administrators provided an update on the sale process, which is expected to be completed on or before 13 September 2019. The update also provides some indication on the likely return for secured and unsecured creditors.

On 8 August 2019, AMP released its 1H19 results. At the same time, it provided details of its new strategy, as well launching a fully-underwritten capital raising. It also announced the sale of its life insurance operations was to proceed on new terms. Although the overarching strategy is complex and execution risk is high, we believe the announcements yesterday are overall positive for the outlook for AMP’s continuing operations.