UK AAA Debt Rating Affirmed; Fewer Loans

Mayank Mehta
29 Mar, 2010
New York City

UK mortgage loans in February declined to a nine-month low dragging homebuilders lower in London trading. Standard & Poor

[R]5:00 PM London – UK mortgage loans in February declined to a nine-month low dragging homebuilders lower in London trading. Rating agency Standard & Poor’s affirmed its top rating for UK debt with negative outlook. First televised debate of the election will see Chancellor of the Exchequer Alistair Darling face Conservative George Osborne.[/R]

Standard & Poor’s affirmed the AAA rating for the UK debt with negative outlook and the rating agency said that the recent budget plans to lower deficit are not specific enough.

The rating agency plans to review the debt again after the 2010 election.

Chancellor of the Exchequer Alistair Darling is scheduled tonight to face Conservative Treasury Spokesman George Osborne in a first televised debate for this year’s election. Prime Minister Brown has yet to call the vote date but May 6 is predicted by most analysts.

In London FTSE 100 Index closed higher 7.64 or 0.13% to 5,710.66 and the pound edged higher to close at $1.495 and to €1.112. UK home builders declined after mortgage loans declined to a 9-month low.

UK lenders approved 47,094 mortgage loans compared to 48,099 loans in January according to the latest data from the Bank of England.

Ruble in Moscow trading declined as much as 1.1% but closed lower 0.4% to 39.75 against the euro after two terror attacks on Moscow subway stations. Micex index declined 0.4%.

Federal Securities Services said one suicide bomber blew herself up at the Lubyanka station at 7:57 a.m. local time and the second exploded her device at 8:37 a.m. at Park Kultury station. At least thirty eight people have been killed and several more are injured.

Gainers & Losers

3i Infrastructure plc rose 0.09% to 109.00 pence after the investment firm in its preliminary estimate said that annual earnings from a year ago are likely to grow.

Afren Plc rose 0.1% to 104.60 pence an independent oil producer said 2009 revenues rose 690% to $335.8 million from $42.5 million a year ago. Net loss for the year was $16.8 million or 2.6 cents per diluted share compared to net loss of $56.1 million or 15.0 cents per share a year.

Antisoma plc plunged 66.9% to 10.50 pence after the British cancer specialist announces that the planned interim analysis of data from the phase III trial of ASA404 in previously untreated non-small cell lung cancer has shown that continuation of the trial would be futile, as there is little or no prospect of demonstrating a survival benefit with ASA404 in this setting. The ATTRACT-1 trial will be halted.

Balfour Beatty plc rose 0.8% to 295.70 pence after the infrastructure contractor today said that Highways Agency, Yorkshire Water and Anglian Water awarded support services work valued at approximately £200 million.

Bowleven plc slipped 4.1% to 128.25 pence after the Cameroon-focused oil explorer announced no dividend.

The Carphone Warehouse Group PLC plunged 23.8% to 145.00 pence after the mobile-phone retailer and broadband provider today split into two separately-listed companies.

Christie Group Plc closed unchanged at 45.00 pence after the professional business services provider said 2009 revenues fell 26% to £47.1 million from £63.4 million a year ago. Net loss for the year was £1.95 million or 8.30 pence per diluted share compared to net loss of £13.6 million or 55.39 pence per share a year.

Dana Petroleum plc dropped 1.6% to 1,231.00 pence and an independent oil and gas explorer said 2009 revenues fell 23% to £397.3 million from £518.0 million a year ago. Net profit for the year fell 76.5% to £22.6 million or 24.66 pence per diluted share compared to net profit of £96.2 million or 104.99 pence per share a year.

Desire Petroleum plc plunged 46.5% to 53.50 pence after the South Atlantic oil explores slumped after Falkland’s oil well showed ‘Poor Reservior’ and no significant oil find.

Diploma Plc surged 10.6% to 202.00 pence after the component distributor said adjusted pre-tax profit for the six months ending March 2010 adjusted for the discontinued business of Anachem are expected to be “significantly ahead of the comparable period last year.”

Lamprell plc added 1.1% to 253.20 pence after the specialist engineer focused on the oil and gas industry reported 2009 net profit of $28.4 million compared to $85.5 million a year ago.

Mondi plc rose 0.7% to 467.40 pence after the loss making South African paper and packaging group announced the successful launch of a €500 million 7-year Eurobond.

Petrofac Limited dropped 0.7% to 1,254.00 pence after the international oil & gas facilities service provider, has been awarded a contract worth more than $600 million for a gas sweetening facilities project in Qatar’s Messaieed and Dukhan industrial districts by Qatar Petroleum.

Rio Tinto plc rose 1.3% to Rs 3,914.00 pence after the Shanghai, China based Intermediate People''s Court has convicted the four Shanghai executives detained on July 5 on charges of receiving bribes and obtaining commercial secrets.

The Royal Bank of Scotland Group plc fell 0.2% to 45.45 pence after the bank agreed the sale of RBS Factoring GmbH to GE Capital.

Savills plc fell 0.3% to 342.80 pence after the real estate advisor today said that its Australian subsidiary agreed to acquire Incoll Management Pty Limited an Australian Project Management and Building Consultancy business for A$13 million.

Southern Cross Healthcare Group PLC plunged 25.0% to 97.50 pence after the care home operator has lower than anticipated average occupancy and fee settlements which are below management''s previous estimates.

Sports Direct International plc added 1.8% to 110.70 pence.

Speedy Hire Plc climbed 1.8% to 28.00 pence after the plant hire specialist and Connaught PLC entered in a five-year agreement worth over £20 million.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 49 increased, 50 declined and 4 were unchanged.

Whitbread Plc decliners in the FTSE 100 index with a loss of 2.58% followed by losses in Burberry Group Plc of 1.95%, in British Sky Broadcasting Group Plc of 1.85%, in The Royal Bank of Scotland Group Plc of 1.78%, and in Cairn Energy Plc of 1.64%.

Xstrata Plc led gainers in the FTSE 100 index with a rise of 3.23% followed by increase in Vodafone Group Plc of 3.03%, in Lonmin Plc of 2.43%, in Legal & General Group Plc of 2.23%, and in Man Group Plc of 2.06%.