S&P: Viskase on positive watch

Standard & Poor's said it revised the CreditWatch implications on its ratings for Viskase Cos. Inc. to developing from positive after the publication of second-quarter earnings results.

The B- corporate credit rating and senior secured debt rating were originally placed on CreditWatch on May 5, following Viskase's announcement that its board had engaged Harris Williams Advisors to evaluate strategic alternatives, which include debt and/or equity financings, the sale of the company and a rights offering.

S&P said the CreditWatch revision reflects concern over slightly weaker operating trends relative to expectations.

The ratings on Viskase reflect its vulnerable business risk profile as a global producer in the highly competitive casings niche within the packaging industry, a narrow scope of operations and a highly leveraged financial risk profile, following the company's emergence from Chapter 11 bankruptcy protection in April 2003, the agency noted.

Partially offsetting factors include steady end markets, diversified customer relationships and consistency in raw-material costs, S&P said.

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