Fitch raffirms EPB bond rating
The bond rating agency Fitch has reaffirmed EPB’s AA+ rating, citing the municipal utility’s stable and diverse service territory and manageable capital and debt levels.
Fitch said EPB’s fiber optic system, which was started in 2010 to offer the country’s first citywide, fiber-to-home telecom service, is now debt free, self-financng and has 93,512 commercial and residential customers. The telecom divison paid $38.5 million for shared services to EPB’s electric service, which supplies TVA-generated power to more than 170,000 customers.
EPB plans $260 million of capital improvements for replacement and maintenance of its power grid in the next five years and could borrow about $50 million next summer.
But Fitch analyst Eva Rippeteau said EPB’s debt remains manageable and EPB has a $50 million line of credit with SunTrust Bank. The AA+ rating was instrumental in helping EPB “refund” existing infrastructure bonds in 2015 that reduced the utility’s interest costs by about $19.8-million.
China eases curbs on foreign business
China took what it called a major step toward opening its financial industry with a promise Friday to ease limits on foreign ownership of banks and securities firms following a visit by U.S. President Donald Trump that was dominated by trade issues.
The announcement by a Cabinet official appeared to respond to mounting U.S. and European complaints that Beijing hampers foreign activity in a variety of industries in violation of free-trade commitments.
China will lift its limit on foreign ownership of securities, fund management and futures companies from a minority stake of 49 percent to a majority stake of 51 percent and end restrictions after three years, the official, Zhu Guangyao, said at a news briefing. He said a similar change would be made for life insurance companies and those would end in five years.
Regulators also will abolish restrictions that limit a single foreign investor’s stake in a Chinese bank to 20 percent and cap total foreign ownership of any institution at 25 percent, Zhu said.
Mattel shares jump on merger reports
Shares of Mattel soared in after-hours trading Friday after a report that rival Hasbro made a takeover offer for Mattel.
The Wall Street Journal, citing people familiar with the matter that it did not identify, said Hasbro approached Mattel recently about a deal. Both companies have had trouble selling their toys to today’s kids, many of whom would rather play with a tablet. Mattel’s toys include Barbie and Hot Wheels. Hasbro has My Little Pony and Monopoly.
A spokeswoman for Pawtucket, R.I.-based Hasbro said it does not comment on “rumors.” Mattel, based in El Segundo, Calif., did not immediately respond to a request for comment.
Equifax hack costs continue into fall
A day after posting sizeable profit declines because of a massive data breach, Equifax said Friday it expects to incur related costs of between $60 million and $75 million in the current quarter.
The Atlanta company reported a 27 percent slump in third-quarter profit, largely due to a hack that exposed the personal information of 145 million Americans.
Interim CEO Paulino do Rego Barros Jr. apologized again for the breach, and said executives will not be receiving bonuses. Richard Smith stepped down as CEO less than three weeks after the credit report company was hacked.
Equifax Inc. said it is trying to keep clients from fleeing and also outlined ways in which it is strengthening security.