S&P: Intertape Polymer on positive watch

Standard & Poor's said it revised the CreditWatch implications on its ratings for Intertape Polymer Group Inc. to positive from negative.

The B- corporate credit rating and other ratings were originally placed on CreditWatch in October 2006, the agency said, noting that the CreditWatch placement followed Intertape's announcement of a strategic review process and our concerns regarding the company's weak operating performance and tight liquidity.

S&P said that the action reflects an amendment to Intertape's credit facility, which has enabled the company to comply with financial covenants, the announcement of second-quarter results, which show an improving trend in Intertape's operating performance and the improved prospects for the success of the company's rights issue, which, if successful, is expected to result in a payment of debt.

According to the agency, the B corporate credit rating will reflect the company's limited scope of operations in the tapes niche of the North American packaging sector, a small presence in films, low margins with some volatility in earnings, vulnerability to cyclical end markets and a highly leveraged financial profile.

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