Fitch Evaluates Refinancing Options for Leveraged U.S. Companies

CHICAGO--(Business Wire)--
Fitch Ratings today released a special report that examines the implications of
the debt-fueled buy-out boom of several years ago. According to Fitch, an
unprecedented amount of leveraged loan and high yield bond debt will come due in
the next five years. Many, if not all, of the U.S. companies that issued such
debt have seen deteriorating operations while the credit markets remain
selective. Furthermore, maturity concentration ensures that many companies will
be vying for lenders' dollars and attention over the next several years. As
described in the report 'Refinancing the Buy-Out Boom: Profiles of Select
Leveraged Credits', several companies have already begun pursuing various
alternatives to proactively manage the refinancing challenges they may face over
the next several years.

In conducting its analysis, Fitch made the following observations:

--Fitch acknowledges there are several early indicators of rising economic
activity and that equity and debt prices have rebounded since March 2009.
However, fundamental catalysts for a meaningful near-term improvement in overall
credit quality remain scarce.

--While many of these highly leveraged companies have generated free cash flow
through the downturn, these companies will remain dependant on external sources
of capital, requiring refinancing/negotiating with lenders.

--Fitch does not expect the institutional loan market to be able to absorb all
of the loan debt that comes due during the next five years. The high yield bond
market will likely expand to absorb a portion, but its capacity could be
stressed by the absolute volume of debt that will need to be refinanced in this
period.

--Unless valuations meaningfully improve from recent levels, equity proceeds
from IPOs are not likely to be a widespread source of debt repayment.

--Several companies have taken pre-emptive actions such as executing debt
exchanges for bonds and amending and extending agreements with bank lenders to
push out debt that matures in the crowded refinancing window.

--Access to capital has improved for some companies recently, but Fitch expects
creditors to remain selective in the near and intermediate term.

In this report, Fitch provides an in-depth analysis of nine 'B' and 'CCC'
category companies in Fitch's rated universe that represent over $100 billion in
total debt across six sectors, and presents detailed assessments of their
capital structures, financial covenant flexibility, and recovery prospects.
While vulnerability to economic weakness is inherent in 'B' and 'CCC' rated
entities, which by definition are highly speculative or carry substantial credit
risk, certain of these companies could ride out the challenges they face in the
economy and credit markets while others have relatively limited flexibility to
endure further deterioration in the environment. The companies profiled are:

--ARAMARK Corporation;

--Energy Future Holdings Corp.;

--First Data Corporation;

--Freescale Semiconductor, Inc.;

--HCA Inc.;

--The Nielsen Company B.V.;

--SunGard Data Systems Inc.;

--Toys 'R' Us, Inc.; and

--Univision Communications, Inc.

The 70+ page report 'Refinancing the Buy-Out Boom' is available on the Fitch
Ratings' web site at 'www.fitchratings.com'.

Additional information is available at 'www.fitchratings.com'.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS.
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK:
HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING
DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S
PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND
METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF
CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE
AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF
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Fitch Ratings
Melissa Link-Cohen, CFA, +1-212-908-0611 New York
Mike Simonton, CFA, +1-312-368-3138, Chicago
Lauren Coste, CFA, +1-312-606-2320, Chicago
Brian Bertsch, +1-212-908-0549, New York
brian.bertsch@fitchratings.com
Cindy Stoller, +1-212-908-0526, New York
cindy.stoller@fitchratings.com

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