Pi Capital
Date of publication: 12 October 2019


Today we will look at two corporate debt securities as investment ideas for this week: Moscow Credit Bank  and Tenneco


In the segment of highly profitable foreign securities, we note one of Tenneco's Eurobonds, one of the world's leading manufacturers of auto parts. The issuer produces products for regulating emissions and controlling the course. It supplies products both for the needs of major automotive concerns, and sells it independently under its own brands. At TENNECO Inc. 81 thousand people are employed. Headquartered in Lake Forest (Illinois, USA). The company's shares are traded on the NYSE with a current market cap of $ 0.9 billion.The senior unsecured issue with maturity on July 15, 2026 in the amount of $ 500 million was placed in June 2016. The issue market is global. The paper provides for 5 call options, the yield to the nearest of them (07.15.2021 at a price of 102.5%) is 20.8%. Options to review the coupon level are not provided. The minimum lot on paper is $ 2 thousand. Eurobonds are serviced by NSD.The issue looks very competitive against the background of papers of comparable credit quality.


Last week, Moody’s affirmed the long-term ratings of Moscow Credit Bank (MCB) at Ba3, the rating outlook is “stable”. MCB priority unsecured debt ratings are also affirmed at this level. “The confirmation of the MCB ratings is due to the relative stability of the bank's financial profile during 2018 and in the first half of 2019, taking into account, on the one hand, a decrease in the volume of problem loans and, on the other hand, a weakening profitability, as well as maintaining generally stable sufficiency indicators capital, "- said in a press release Moody's.
The senior issues of the issuer offer a yield in the range of 5-6% and look interesting against the background of international peers.
Alexey ShternshisJoint Managing DirectorСapital Pi

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