S&P: DS Waters on watch

Standard & Poor's said it placed the ratings on DS Waters of America Inc., including the B corporate credit rating, on CreditWatch with negative implications.

The agency said it views DS Waters and its holding companies, DSW Group Inc. and DSW Holdings, as one economic entity.

The CreditWatch listing reflects a belief that DS Waters' operating performance has continued to weaken, which has resulted in weaker credit measures, said Jean Stout, an S&P analyst.

DS Waters will be challenged to improve its operating results amid continued weak economic conditions, as well as expected higher commodity costs, the analyst said.

The company also faces significant refinancing risk over the next 12 to 18 months at both the operating company and parent holding company levels, S&P said.

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