BRIEFS

RATINGS

By InvestSMART · 10 Feb 2012

By InvestSMART ·
10 Feb 2012

Comments

RATINGS

Macquarie on watch

Fitch Ratings has placed Macquarie Group Limited and its local subsidiaries on rating watch negative for their long-term issuer default ratings and viability ratings. The move stems from Fitch's review of global banks and follows the announcement of a similar review of Australia's four major banks.

TAX RULING

Hardie awaits

James Hardie Industries has requested a trading halt in its shares today pending a High Court ruling on whether the Australian Taxation Office will be granted special leave to appeal in a $368 million capital gains tax dispute. The case, which the Full Federal Court decided in the company's favour last year, relates to a 1998 corporate restructure. The outcome will affect the cash flow of the company and the asbestos compensation trust it funds.

FINANCE

FlexiGroup ahead

FlexiGroup, a financer of rental consumer equipment, says it expects similar gains for the full year after first-half net profit rose 13 per cent. The net profit for the six months to December 31 was $28.2 million and the company reaffirmed its guidance for profit growth of between 12 and 15 per cent for this financial year.

CONSTRUCTION

Contract to Clough

Clough has won its second contract in a week for Chevron's Wheatstone liquefied natural gas project, this time valued at $400 million. The construction and engineering firm was awarded the contract by Bechtel to design and build the Wheatstone product loading facility and tug berths near Onslow, Western Australia.

ALUMINIUM

Effort to save jobs

Governments and unions say they will work to try to keep Alcoa's aluminium smelter running at Point Henry in Victoria to save 600 jobs. Alcoa said this week it would review the viability of the smelter in Geelong because it had become unprofitable.

COAL

Thiess wins deal

Leighton Holdings subsidiary Thiess has won a $180 million contract for civil earthworks at BHP Billiton Mitsubishi Alliance's Caval Ridge coalmine in Queensland.

RATES

BoQ holds steady

Bank of Queensland says it will keep its standard variable home loan rates steady, in line with this week's decision by the Reserve Bank. Interest rates will be kept steady regardless of movements by other banks, BoQ said.

MEXICO

Slim loses pensions

Billionaire Carlos Slim's Grupo Financiero Inbursa SAB is being stripped of 10.9 billion pesos ($856.8 million) worth of pension accounts by Mexican regulators. Data from industry regulator Consar shows the fund recorded an average return of 7.31 per cent compared with the 11.51 per cent gain for all pensions.

Go to Google News, then click "Follow" button to add us.

Share this article and show your support

Frequently Asked Questions about this Article…

What does Fitch placing Macquarie Group on 'rating watch negative' mean for investors?

Fitch has placed Macquarie Group Limited and its Australian subsidiaries on rating watch negative for their long‑term issuer default ratings and viability ratings. The move comes as part of Fitch’s review of global banks and follows a similar review of Australia’s four major banks. Everyday investors should note this is a credit‑rating development to monitor alongside any company announcements.

Why did James Hardie request a trading halt and what are the potential impacts?

James Hardie asked for a trading halt while it awaits a High Court decision on whether the Australian Taxation Office will be granted special leave to appeal a A$368 million capital gains tax dispute. The Full Federal Court had previously decided in James Hardie’s favour for a 1998 corporate restructure. The outcome could affect the company’s cash flow and the asbestos compensation trust it funds.

How did FlexiGroup perform in its latest half‑year and what guidance did it give?

FlexiGroup reported a first‑half net profit rise of 13%, with net profit of A$28.2 million for the six months to December 31. The financier reaffirmed its guidance for full‑year profit growth of between 12% and 15% for the financial year.

What is the Clough contract win on Chevron’s Wheatstone project and why does it matter?

Clough won a A$400 million contract from Bechtel to design and build the Wheatstone product loading facility and tug berths near Onslow, Western Australia, for Chevron’s Wheatstone LNG project. It was Clough’s second contract in a week related to Wheatstone, signalling continued work for the company on that major LNG development.

What is happening with Alcoa’s Point Henry aluminium smelter and the jobs at risk?

Alcoa said it will review the viability of its Point Henry aluminium smelter in Geelong after it became unprofitable. Governments and unions have said they will try to keep the smelter running to save around 600 jobs while the viability review is under way.

Which mining contract did Thiess win and what are the details?

Thiess, a subsidiary of Leighton Holdings, won a A$180 million contract for civil earthworks at the Caval Ridge coalmine in Queensland. The contract is for work with the BHP Billiton Mitsubishi Alliance on that project.

What did the Bank of Queensland say about its standard variable home loan interest rates?

The Bank of Queensland announced it will keep its standard variable home loan rates steady, in line with the Reserve Bank’s recent decision. BoQ said it will maintain those rates regardless of any movements by other banks.

What happened to Carlos Slim’s Grupo Financiero Inbursa pension accounts and how did its returns compare?

Mexican regulators are stripping Grupo Financiero Inbursa of 10.9 billion pesos (about US$856.8 million) worth of pension accounts. Data from industry regulator Consar showed Inbursa recorded an average return of 7.31% compared with an 11.51% average gain for all pensions.