Fitch Ratings has placed its ratings of American International Group (AIG) and its insurance and financial services subsidiaries on Rating Watch Negative. Previously, Fitch had a Negative Rating Outlook on AIG and the majority of its insurance-related subsidiaries rated by Fitch, and a Stable Rating Outlook on AIG's financial services subsidiaries, including AIG Capital Corp. (AIGCC), International Lease Finance Corp. (ILFC), and American General Finance Inc. (AGF). Also, Credit Suisse lowers third quarter estimate, cuts target, rates AIG neutral.
Lehman Brothers (LEH) shares were lower on unconfirmed reports that a top Korean regulator voiced concern about state-run Korea Development Bank (KDB) possibly purchasing an interest in a global bank. Separately, unconfirmed reports suggest that internal unrest may lead to LEH chairman, CEO Richard Fuld relinquishing executive duties this year. On Friday, LEH shares rose sharply on reports that Korean Development Bank said LEH is one of its options for an acquisition. S&P maintains hold.
Healthways (HWAY) affirms its previously issued fiscal year 2008 guidance of $1.50-$1.55 EPS on $720-$740 million revenue. It sees $0.34-$0.37 first quarter fiscal year 2009 EPS, but says while this guidance anticipates solid EPS growth year-over-year, sequential-quarter performance reflects decline in revenue due to impact of certain contract renegotiations, reduced revenues associated with winding down of a previously discussed contract terminating at end of calendar year 2008, full-quarter effect of small contract losses due to health plan consolidation. Jefferies downgrades to underperform from buy.
JPMorgan Chase & Co. (JPM) says in an 8-K filing today that it held approximately $1.2 billion par value of Fannie Mae and Freddie Mac perpetual preferred stock. JPM estimates that such preferred stocks have declined in value by approximately $600 million in the third quarter to date, based on current market values. S&P cuts 2008 EPS estimate, but keeps strong buy.
Quest Energy Partners, L.P. (QELP), Quest Resource (QRCP) and Quest Midstream Partners accept the resignation of Jerry Cash as Chairman and CEO of all three entities, effective immediately. Resignation follows discovery, in connection with an inquiry from Oklahoma Department of Securities, of questionable transfers of company funds to an entity controlled by Cash. Initial indications are that the amount in question appears to involve about $10 million.
LDK Solar (LDK) says its wafer plant reached milestone of 1.0 GW annualized capacity. It sees 2009 revenue of $2.8-$3.0 billion and wafer shipments of 1.45 GW to 1.55 GW. S&P reiterates hold.
Noven Pharmaceuticals (NOVN) says Daytrana, its transdermal patch for treatment of symptoms of Attention Deficit Hyperactivity Disorder (ADHD), and licensed globally to Shire (SHPGY), is the subject of voluntary recall of two lots of the product because the patches in these lots do not meet the product's release liner removal specification and, as a result, patients and caregivers could have difficulties removing the release liner when they peel the patch open.
Gilat Satellite Networks Ltd. (