TSC Ratings' Updates: Procter & Gamble

The following ratings changes were generated on Friday, March 6.

We've downgraded natural gas company El Paso(EP Quote) from hold to sell, driven by its deteriorating net income, generally weak debt management, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Net income decreased to -$1.7 billion from $160 million in the same quarter last year, significantly underperforming the S&P 500 and the oil, gas and consumable fuels industry. El Paso's debt-to-equity ratio of 3.5 is very high and currently above the industry average, implying very poor management of debt levels within the company. Its 0.6 quick ratio demonstrates the company's lack of ability to cover short-term liquidity needs. Return on equity has greatly decreased compared with the year-ago quarter, a signal of major weakness. Net operating cash flow decline marginally, by 7% to $319 million. ...