S&P affirms EMI

Standard & Poor's said it affirmed its BB/B long- and short-term corporate credit and BB senior unsecured debt ratings on EMI Group plc.

S&P added that the long-term and debt ratings were removed from CreditWatch, where they had been placed with negative implications on Nov. 28, when the group reported a takeover approach.

The outlook is negative.

According to the agency, EMI's announcement ending buyout talks removes the group's financial risk profile from the immediate threat posed by a potentially highly leveraged bid, against debt protection metrics that are already stretched for the ratings.

Nevertheless, S&P said it is concerned that EMI's top management, but not necessarily its divisional management, might continue to focus on takeover activity as the group recently announced an agreement on a 45% minority buyout of the Japanese recorded music operations of Toshiba Corp. (BBB/negative/A-2).

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