Last Updated: May 16, 2012

News — Credit Related

Fed: C&I Loan Demand Stronger; Banks More Competitive

A quarterly survey of senior loan officers by the Federal Reserve found that domestic banks are reporting an increase in demand for C&I loans from firms of all sizes. The report said banks are easing terms, many doing so in response to more aggressive competition.

Fitch Raises CapitalSource, Affirms Bank Subsidiary

Fitch Ratings said it has upgraded CapitalSource’s long-term Issuer Default Rating and senior sub-debt rating to ‘BB’ and ‘BB-’, respectively, and affirmed the long-term IDR of its wholly-owned bank subsidiary, CapitalSource Bank.

Moody’s Downgrades GE Due to GE Capital’s Higher Risk Profile

Moody’s said it downgraded the senior unsecured debt rating of GE and the senior unsecured rating of GE Capital. The downgrades are a result of Moody’s revised global rating methodology for finance companies and reflect the impact of GE Capital’s higher risk profile on GE.

Fitch Affirms Cat, Cat Financial at ‘A’; Outlook Stable

Fitch Ratings has affirmed the Issuer Default Ratings and Long-term debt ratings at ‘A’ for Caterpillar, Caterpillar Financial and CFSC’s subsidiaries including Caterpillar Financial Services Australia.

GE Capital Swaps Rise After Moody’s Begins Rating Review

Bloomberg reported that the cost to protect debt from GE Capital against a default rose after Moody’s said the business may receive a debt rating lower than the parent because of higher risk.

Moody’s May Cut GE Capital Grade on Risk

Bloomberg reported that GE Capital may be given a debt rating from Moody’s that is lower than the parent company’s grade for the first time in at least two decades because of higher risk.

Study: More Small Businesses Shut Out of Credit Markets

According to a new NFIB study, the number of small businesses obtaining credit was about the same as the two prior years. However, demand for credit increased in 2011, meaning more small businesses were shut out of the credit market than in prior years.

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Date Posted February 21, 2012

Small Business Approval Rates Improve Past 12 Months

Biz2Credit said that an analysis of 1,000 loan applications processed through its online lending platform showed that approval rates of small business financing requests in January increased to their highest levels in the past 12 months.

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Date Posted February 13, 2012

Fitch: Ratings Outlook Stable for U.S. Leasing Companies

According to Fitch Ratings, the outlook for U.S. finance and leasing companies is stable for 2012 as the industry’s improved operating profiles position them against economic uncertainties.

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Date Posted December 20, 2011

Fitch Affirms ILFC Rating at ‘BB’ After Q3 Loss

Fitch Ratings said it affirmed its issuer default rating for ILFC, which posted a Q3 loss, at “BB.” The rating agency said the low rating reflects continued strains caused “by inconsistent operating results and a lack of clarity regarding ownership.”

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Date Posted November 7, 2011

Moody’s Assigns Provisional Ratings for LEAF Securitizations

Moody’s has assigned provisional ratings to the notes to be issued by LEAF Receivables Funding 7, LLC — Equipment Contract Backed Notes, Series 2011-2 affecting approximately $136.6 million in asset-backed securities issued.

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Date Posted October 13, 2011

Credit Managers’ Index Falls to Lowest Level Since 2008-2009

The National Association of Credit Management released its Credit Managers’ Index which showed that the CMI hasn’t been this low in more than a year and is now tracking at levels last seen in 2008-2009.

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Date Posted September 2, 2011

Q1 Small Biz Approval Rates Highest for Vehicle/Equipment Loans

The NY Fed released results from its Small Business Borrowers Poll that showed the approval rate for vehicle and equipment loans was relatively high at 71% versus new lines of credit, business loans and extensions of existing credit lines.

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Date Posted August 12, 2011

FICO: Bankers Pessimistic About Small Business

According to a FICO survey conducted by the Professional Risk Managers’ International Association, bankers remain optimistic about the financial health of consumers but indicate that the “credit gap” for small businesses will grow.

Increased Competition Causes Banks to Ease Lending Standards

The Fed’s April senior loan officer opinion survey on bank lending practices indicated, on net, standards and terms generally eased during the first quarter on increased competition from other banks and non-bank lenders.

Fitch Affirms RVI’s Ratings; Notes Lease Accounting Uncertainty

Fitch Ratings said it has affirmed the ‘BBB-’ IFS ratings of RVI, but notes longer term uncertainty with regard to proposed changes in lease accounting standards and its potential impact on RVI’s business model.

Booming Debt Market Largely Unavailable to ‘Turnarounds’

A report issued by investment banking firm Morgan Joseph notes that although the current syndicated loan and high yield debt markets are booming, they remain largely unavailable to “turnaround” situations and lower middle market borrowers.

Treasury Commits $1.5 Billion to Small Business Lending

At an Access to Capital Conference, Treasury head Tim Geithner said the government’s $1.5 billion funding commitment nationwide is expected to spur $15 billion or more in small business lending.

Fitch Affirms Ryder System IDR; Outlook Stable

Fitch Ratings has affirmed Ryder System long- and short-term IDR ratings at ‘A-’ and ‘F2′, respectively and noted the truck leasing company’s rating outlook is stable.

Fed Holds Current Rate Steady

The Fed announced that since the FOMC met in January 2011, economic recovery is on a firmer footing. However, because of concerns about weak investment in nonresidential structures, the depressed housing market and sharply rising commodity and oil prices, the FOMC will maintain the current target range for the federal funds rate at 0 to 0.25%.

GreatAmerica Completes $362.4 Million 10th-Term Securitization

GreatAmerica Leasing Corporation (“GreatAmerica”) announced completion of its tenth-term securitization in the amount of $362.4 million. GreatAmerica Leasing Receivables Funding, a GreatAmerica wholly-owned subsidiary, issued the notes. The bond issue was characterized by strong investor demand with orders placed for 2.6 times the amount actually issued. The placement agents of the notes were Wells Fargo [...]

CFO: Lenders Ease Up on Restricted Payments

A recent article by CFO.com staff writer Vincent Ryan notes signs of looser creditor protections and greater flexibility for borrowers with a growing number of companies are getting lenders to relax the restricted payment covenants on debt. In numerous public filings during the last three months, companies have detailed changes to credit agreements that will [...]

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Date Posted February 16, 2011

Bank of America Extends $685 Billion in Credit in 2010

Bank of America extended more than $685 billion in credit to individuals, small businesses, nonprofits and large companies in 2010, including the extension in $92 billion of credit to small- and medium-sized businesses, exceeding the bank’s goal of $86 billion. Credit extended in the fourth quarter of 2010 – nearly $188 billion – reflects a [...]

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Date Posted February 8, 2011

CFO: A Warming Trend in Credit

Citing recent survey results from the National Association of Credit Management, CFO staff writer Sarah Johnson notes a key indicator of credit availability makes a big jump. Trust is returning to business partnerships. Suppliers are increasingly granting credit to their customers, according to the latest monthly report by the National Association of Credit Management (NACM). [...]

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Date Posted February 7, 2011