Latest news with #Moody's-adjusted
Yahoo
16-06-2025
- Business
- Yahoo
First Horizon's Credit Ratings Outlook Upgraded to Positive by Moody's
First Horizon Corporation's FHN holding company's long-term issuer rating and senior unsecured notes, and First Horizon Bank's long-term issuer and long-term deposit ratings were upgraded to positive from stable by Moody's. Moody's affirmed First Horizon's Baa3 long-term issuer rating, as well as the ratings and assessments of its lead bank, First Horizon Bank, and its subsidiary, First Tennessee Real Estate Securities Co Inc. (together known as First Horizon). The upgraded credit ratings outlook reflects First Horizon's strengthening regional banking franchise in the Southeast, where it has leveraged its expansive footprint and made key investments in technology and marketing to increase market share while bolstering risk management. Additionally, the company has continued to improve its deposit franchise by attracting depositors and retaining a high proportion of relationships. Despite near-term uncertain economic conditions, Moody's expects these improvements in asset quality and funding to continue. Moody's affirmed FHN's ratings based on its consistent performance over the past few years, which includes decent asset quality, strong capitalization and adequate liquidity. The bank benefits from increased diversification in both geography and lending, supported by its specialty commercial and industrial (C&I) lending platforms, which offer secured, lower-loss lending products nationwide. Although CRE exposure is concerning, Moody's views the portfolio as conservatively underwritten, with limited office and construction exposure. Another rationale for the rating is First Horizon's deposit franchise, which has shown resilience and adaptability, particularly since the collapse of its planned merger with Toronto-Dominion Bank in 2023. In terms of capital strength, FHN maintains solid buffers, with a Moody's-adjusted tangible common equity (TCE) ratio of 10.6% and a CET1 ratio of 10.9% as of March 2025 — both within or slightly above its target ranges. Moody's expects the bank to maintain this positioning through prudent capital management, balancing loan growth with shareholder returns. Profitability is recovering as well, aided by its specialty lending and ability to manage deposit pricing. However, fee income remains volatile, particularly due to its reliance on FHN Financial's trading operations and mortgage-related businesses, which are sensitive to market conditions. Moody's believes the combination of solid financial metrics, better franchise strength and effective risk controls support the affirmation of current ratings, while ongoing improvements in capital, asset quality and funding diversification rationalize the positive outlook. However, Moody's noted that an upgrade is likely if FHN continues to demonstrate prudent risk management, sustains strong capitalization and improves deposit quality without over-relying on brokered or wholesale funding. Conversely, the outlook can revert to stable if the bank's risk profile worsens, CRE exposure increases, or capital and deposit stability weakens. Over the past year, shares of First Horizon have risen 36.5% compared with the industry's growth of 24.4%. Image Source: Zacks Investment Research Currently, FHN carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. In May 2025, Fitch Ratings revised the outlook of UBS Group AG UBS, UBS AG and UBS Switzerland AG to Positive from Stable. UBS's long-term Issuer Default Rating has been affirmed at 'A,' whereas UBS AG's and UBS Switzerland AG's have been affirmed at 'A+.' This upgrade reflects Fitch's expectation that UBS's well-advanced integration of Credit Suisse will continue to reduce execution risks while improving profitability. In March 2025, Hercules Capital, Inc. HTGC announced that Morningstar DBRS upgraded its investment grade credit and corporate ratings to BBB (high) from BBB. The trend revision has been revised from Positive to Stable. The upgraded ratings with a stable outlook indicate HTGC's sustained solid operating performance in 2024 and a roughly 14% rise in assets under management on a year-over-year basis. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report UBS Group AG (UBS) : Free Stock Analysis Report Hercules Capital, Inc. (HTGC) : Free Stock Analysis Report First Horizon Corporation (FHN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Khaleej Times
24-04-2025
- Business
- Khaleej Times
Moody's Ratings upgrades PNC Investments CFR to Ba2
PNC Investments LLC (PNCI), the parent company of global luxury real estate developer Sobha Realty, has received an upgrade in its Corporate Family Rating (CFR) from Moody's Ratings, which raised the rating to Ba2/stable from Ba3/stable. Additionally, the senior unsecured rating of PNCI's existing $500 million sukuk issued by Sobha Sukuk Limited has been affirmed at Ba2, all outlooks remain stable. This upgrade reflects PNCI's continued strong sales, robust construction activity, and significant improvement in credit metrics. In 2024, revenue rose to Dh8.9 billion from Dh6.5 billion in the previous year. Moody's-adjusted debt to EBITDA improved to 1.7x from 2.7x in 2024 and is expected to further strengthen to 0.9x in 2025. As the second largest privately held residential developer in Dubai by sales, Sobha Realty continues to demonstrate the strength of its Backward Integration Model, allowing full control from design to delivery. This, coupled with a strong backlog of more than Dh23 billion, positions the company to navigate evolving market dynamics effectively while delivering on its commitment to excellence and timely project delivery.
Zawya
23-04-2025
- Business
- Zawya
Moody's Ratings upgrades PNC Investments LLC (Sobha Realty)'s CFR to Ba2
Dubai: PNC Investments LLC (PNCI), the parent company of global luxury real estate developer Sobha Realty, has received an upgrade in its Corporate Family Rating (CFR) from Moody's Ratings, which raised the rating to Ba2/stable from Ba3/stable. Additionally, the senior unsecured rating of PNCI's existing $500 million sukuk issued by Sobha Sukuk Limited has been affirmed at Ba2, all outlooks remain stable. This upgrade reflects PNCI's continued strong sales, robust construction activity, and significant improvement in credit metrics. In 2024, revenue rose to AED 8.9 billion from AED 6.5 billion in the previous year. Moody's-adjusted debt to EBITDA improved to 1.7x from 2.7x in 2024 and is expected to further strengthen to 0.9x in 2025. As the second largest privately held residential developer in Dubai by sales, Sobha Realty continues to demonstrate the strength of its Backward Integration Model, allowing full control from design to delivery. This, coupled with a strong backlog of more than AED 23 billion, positions the company to navigate evolving market dynamics effectively while delivering on its commitment to excellence and timely project delivery. To read more, please reach the full report: About Sobha Realty Sobha Realty is an international luxury developer committed to redefining the art of living through sustainable communities. Established in 1976 as an interior decoration firm in Oman by PNC Menon – a visionary entrepreneur, the company has grown its presence with developments and investments in the UAE, Oman, and India. For nearly five decades, Sobha Realty has been redefining the real estate value chain through 'Backward Integration,' by leveraging its inherent in-house capabilities of conceptualisation, design, and development. Today, the firm has developed into one of the most prominent and premium real estate developers in the UAE as well as aims to become a global real estate developer, with its essence, the 'Art of the Detail,' remaining deeply embedded in the organisation's DNA. With a proven track record of delivering projects ahead of schedule, the company has eleven masterplans across the UAE and is continually expanding its presence in the city with a number of other prominent projects. The flagship community of Sobha Realty (Sobha Hartland) is a thriving community that is home to over 11,000 residents.
