Revenues increased by 8% to AUD1.58bn while underlying EBITDA declined 2% to AUD120.9m. Given the continued dry weather in Australia and a slow start to the season in Europe Nufarm has revised down its FY19 EBITDA guidance to AUD440m-AUD470m (previously AUD500m-530m). Given the expected leverage by year end FY19 and continued challenging operating conditions, we expect Nufarm’s rating to remain under pressure (as evidenced by its current negative outlook by S&P).

Rackspace Hosting Inc. reported 4Q18 results which were overall sound, with particularly good free cash flow generation. Total revenue increased 6% year on year to USD604m while adjusted EBITDA was relatively stable at USD185m. Rackspace’s largest division, Managed Hosting & Private Cloud grew 5% to USD366m, with 4Q18 recording the highest booking since the LBO.

Mallinckrodt Plc’s results were broadly in line with market expectations. 4Q18 revenues of USD835m increased 5.6% on a constant currency basis, however declined 2.8%. when excluding acquisitions. 4Q18 adjusted EBITDA increased 10% to USD356m, compared to the prior corresponding period.

Dalrymple Bay Coal Terminal (DBCT), located south of Mackay, Queensland, is one of the worlds’ largest coal export terminals. The terminal has a capacity of 85 million tonnes per annum and handles approximately 22% of the world’s metallurgical coal, a key ingredient in the making of steel.

At the current price, we believe Ovato’s 8.25% November 2022 Notes offer fair relative value. While the Group has slightly revised down its FY19 guidance, it announced the closure of one of its plants and additional cost savings. The credit outlook is Stable, noting that establishing a track record of delivering the announced cost savings will be important in the future direction of our credit outlook.

The US FCC has hit pause on their review of the merger for another three weeks to allow additional public comments. CreditSights remain comfortable with their view that the merger will go through and have maintained an Outperform recommendation on Sprint.

A recent newspaper article claiming an RMBS bond default has incensed the bond analyst community, highlighting the unique nature of credit analysis.

New Issue Alert for IAG. The issuance will be 26yr NC 6.25yr-7.25yr subordinated Tier 2 notes issued by IAG, which will refinance the outstanding IAL notes with a 19 March 2019 call.

Operating since 1997, Liberty is a diversified finance company with operations across Australia and, in more recent years, New Zealand. Its products and services include specialty lending, finance and insurance brokering, receivables servicing, consumer insurance underwriting, and funds management.

IMF recently released their 1H19 results, with the company reporting an unaudited net loss after tax of AUD(10.4m). Despite the loss, we forecast IMF to report a material increase in key earnings metrics over the next few years. We have reiterated our Market Perform recommendation, with a Stable credit outlook.

CML recently released their 1H19 results, with the company reporting an unaudited net profit after tax of AUD4.4m, up 161% on the prior corresponding period. We have reiterated our Market Perform recommendation, with a Stable credit outlook.

Virgin Australia Holdings Limited (Virgin) is Australia’s second largest airline, providing access to over 480 destinations worldwide. Virgin also provides services together within airline partners and operates flights domestically and internationally; carrying around 24 million passengers annually and currently operates 3,400 average weekly scheduled flights to 46 destinations in Australia and 16 internationally. Virgin is listed on the Australian Securities Exchange (ASX) with a market capitalisation of AUD1.69bn as at 4 March 2019.

Since we last released a strategy note on Dean Foods, the credit has underperformed, surprising markets and analysts alike. Here we look at what the challenges are, and options for bond holders.

CenturyLink Inc. (CLINK) reported its 4Q18 results. Total pro forma revenue was slightly weaker at USD5.8bn (4Q17: USD6.0bn), however due to improved margins and realised synergies, adjusted EBITDA increased to USD2.2bn from USD2.0bn. EBITDA margins increased to 37.9% from 33.2%.

Hertz Global Holdings (Hertz) reported sound 4Q18 results supported by a strong pricing and residual environment. Total revenues were USD2.3bn, compared to USD2.1bn in 4Q17. Adjusted EBITDA was USD49m, compared to USD21m in the same period last year.

Frontier Communications (Frontier) released its 4Q18 results. Consolidated revenue totalled USD2.1bn in 4Q18 (down 4.2% YoY). While weak subscriber results continue to drag on the top line, 4Q18 marked the slowest YoY decline in quarterly revenues since the acquisition of the CTF assets.

The March 2019 update to our DirectBond List including new additions and our current Trading Restrictions list.