S&P: Akerys on watch

Standard & Poor's said it placed on CreditWatch with negative implications Akerys Holdings SA' B+ corporate credit rating and B rating on its €300 million floating-rate notes due 2014.

The watch reflects Akerys' weaker-than-expected results in the third quarter ending March and reduced coverage of interest charges by operating cash flow after changes in working capital, according to the agency.

Ratings reflect the company's aggressive financial profile and lack of geographic diversity, as well as the property development industry's inherent characteristics of cyclicality, working capital intensity, low barriers to entry and high fragmentation, S&P said.

These negative factors are partly mitigated by Akerys' relatively prudent risk policies, ongoing focus on cash flows and liquidity

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