Fitch rates AmeriGas notes BB+

Fitch Ratings assigned a BB+ rating to AmeriGas Partners, LP's $40 million senior notes due 2011, issued jointly with its special purpose financing subsidiary AP Eagle Finance Corp. and confirmed the company's outstanding $345 million senior notes at BB+. The outlook is stable.

Fitch said the rating reflects the subordination of the debt to approximately $608 million of secured debt of operating limited partnership AmeriGas Propane LP including AmeriGas Propane's BBB rated first mortgage notes.

Also reflected in the ratings is the underlying strength of AmeriGas' retail propane distribution network, Fitch said, adding that AmeriGas is one of the premier retail propane distributors evidenced by its efficient operations, favorable acquisition track record and proven ability to sustain gross profit margins under various operating conditions.

Although the AmeriGas' financial performance suffered due to significantly warmer than normal weather during the 2001-2002 heating season, credit measures remained within expectations for the BB+ category, Fitch said. Consolidated company ratios for earnings before interest, taxes, depreciation, and amortization (EBITDA) coverage of interest and total debt to EBITDA for the 12-month period ended Dec. 31, 2002 were 2.3 times and 5.1 times, respectively, compared to 2.6x and 4.8x for the fiscal year ended Sept. 30, 2001.

S&P upgrades PLDT

Standard & Poor's upgraded Philippine Long Distance Telephone Co. The outlook is stable.

Ratings affected include PLDT's $4 million preferred stock, raised to B from B-, and its $150 million 10.625% notes due 2004, $300 million 8.35% bonds due 2017, $200 million 7.85% bonds due 2007 and $350 million bonds due 2012, all raised to BB from BB-.

Moody's confirms Philippine Long Distance

Moody's Investors Service confirmed the long-term ratings of Philippine Long Distance Telephone Co., affecting $2.055 billion of debt. The outlook is stable. The action, which concludes the review for possible downgrade begun on Jan. 25, 2002, includes PLDT's senior unsecured debt at Ba3 and preferred stock at B2.

Moody's said the action follows PLDT's issue of $350 million in bonds which reduces near-term refinancing risk.

Moody's added that the stable outlook reflects its expectation that PLDT's credit profile will now stabilize following recent financing initiatives, and that the company may soon be in a position to reduce debt.

Current year maturities of $365 million will be covered by a combination of facilities either finalized or nearly so, and operational cash flow, Moody's said.

Maturities of $570 million in 2003 and $400 million in 2004 will be "substantially" covered by repayment or extension using proceeds from the recent bond issue and with other financing initiatives, Moody's said.

S&P downgrades Giant, rates new notes B

Standard & Poor's downgraded Giant Industries Inc. and removed it from CreditWatch with negative implications. The outlook is negative. Ratings affected include Giant's $100 million 9.75% senior subordinated notes due 2003 and $150 million 9% senior subordinated notes due 2007, both cut to B from B+. S&P also assigned a B rating to Giant's upcoming offering of $200 million senior subordinated notes due 2012.

S&P said that although the Yorktown, Va. refinery acquisition improves Giant's overall business position, the rating actions reflect the deterioration in Giant's financial profile following the $170 million (including inventory) debt-financed transaction.

Giant's ratings reflect its position as a leveraged independent oil refiner/marketer operating in a very competitive, highly cyclical industry that is burdened by high fixed costs, S&P said. Giant's business position in enhanced by its dominant position in the refined product markets of the Four Corners Area, which is within a 250 miles radius of its two New Mexico refineries (total capacity 42,600 barrels per day (bpd)).

Due to limited competition caused by geographic isolation, Giant historically has enjoyed superior refining margins relative to its peers. However, proposals to increase refined product pipeline capacity into Giant's area of operation could cause margin compression, S&P said.

The acquisition of the Yorktown refinery lessens Giant's dependence on its single, niche market and provides potential growth opportunities, S&P commented.

When the Yorktown acquisition is complete, Giant's total debt to total capital will increase to roughly 75% from 65%, the rating agency added. Assuming mid-cycle refining margins, total debt to EBITDA will likely remain above 3 times and EBITDA coverage of interest and capital expenditures should be around 2x given the staggered nature of environmental expenditures, which are scheduled to begin in 2003.

S&P confirms Milacron

Standard & Poor's confirmed its ratings on Milacron Inc. including its senior secured debt at BB- and its senior unsecured debt at B.

S&P said the action follows Milacron's announcement it is selling the Widia Group, its European and Indian metalworking tools operation, to Kennametal Inc. for €180 million (about $170 million).

Most of the sale proceeds will be used to reduce bank debt but Milacron still needs to demonstrate profitability in its core plastics machinery business, S&P said.

The ratings on Milacron reflect an average business risk profile and an aggressive financial profile. Milacron's current profitability has declined materially because of the sharp downturn in North American demand for plastics machinery and metalworking tools; the timing and extent of market recovery remains highly uncertain, S&P commented.

Sales were down year-to-year 25% for plastics processing equipment and 17% for metalworking tools. Management has reduced staffing and cut back production in certain operations. To further conserve cash, inventories are being worked down and capital expenditures reduced. However, debt to total capital and was somewhat aggressive at 63% at Dec. 31, 2001, constraining financial flexibility, the rating agency said.

Moody's confirms Winn-Dixie's ratings

Moody's Investors Service confirmed Winn-Dixie Stores Inc.'s ratings based on the company's strategic plans to exit its unprofitable Texas and Oklahoma operations. The rating outlook remains negative due to the company's challenges in building sales and margins in the competitive market that is dominated by better capitalized companies, Moody's said.

Confirmed ratings include Winn-Dixie's senior implied at Ba1, senior bank agreement at Baa3, long term issuer rating at Ba2, senior unsecured bonds at Ba2 and commercial paper at not prime.

Winn-Dixie is currently negotiating the sale of most Texas and Oklahoma stores and will close any unsold sites. Earnings will increase once the exit is completed and management will be able to focus on market with better potential, Moody's said. However, the company will incur additional charges of about $75 million after-tax, making this the third consecutive fiscal year in which material charges have been incurred to re-position the company. The cash from the property sales and inventory liquidation will total approximately $90 million, exceeding the charges, and, according to the release, the excess cash will most likely be used to reduce debt and/or fund re-investment in the business.

Moody's confirms Varsity Brands

Moody's Investors Service confirmed its ratings on Varsity Brands, Inc. including its $15 million senior secured revolving credit facility due September 2002 at B1 and $66 million 10.5% senior notes due 2007 at B2. The outlook is stable.

Moody's said the confirmation completes a review for possible downgrade begun last year and follows Varsity's use of all $70 million proceeds from the sale/exit of the team sports and licensing businesses towards debt reduction.

The rating action also reflects the steady operating performance of the remaining business segments (uniforms, camps and events), particularly in a difficult economic environment, Moody's said.

Sales for the year ended December 2001 were up over 8% from the prior year and operating margins improved around 30 basis points to 9.5% from 9.2%. In combination, the debt reduction and improved core operations resulted in pro-forma credit statistics that compare favorably to other issuers in Varsity's rating category. Interest coverage is approximately 1.9x on an EBITA basis (2.2x on an EBITDA basis); total debt is around 4.6x EBITA (4.1x EBITDA); and retained cash flow is over 10% of total debt, Moody's said.

Moody's downgrades Microcell

Moody's Investors Service downgraded Microcell Telecommunications Inc. The outlook is negative. Ratings lowered include Microcell's 14% senior discount notes due 2006, 11.125% senior discount notes due 2007 and 12% senior discount notes due 2009, all to Caa3 from Caa1. The outlook is negative.

Moody's said Microcell's ratings are limited by its likely need to access funding from the capital markets within two years, the outcome of which is uncertain.

The company has a high level of existing debt and it may have difficulty achieving necessary cash flow growth as the smallest and most financially constrained of the four Canadian wireless competitors, Moody's said.

Should Microcell need to restructure its debt, Moody's said it believes that asset values are unlikely to fully cover the company's debt obligations, particularly as there may be a limited number of interested buyers given current foreign ownership restrictions in Canada.

However Microcell has shown success as a startup wireless company in establishing a very strong brand identity, it has all-digital, single technology (GSM) customer base, 30MHz of national spectrum, lower handset costs and migration path to 3G associated with the globally-dominant GSM protocol and succeeded in accessing capital late last year in a very difficult market environment including funding support from its major shareholders.

Moody's upgrades Correction Corp.

Moody's Investors Service upgraded Corrections Corp. of America, affecting $1.1 billion of debt. Ratings affected include Corrections Corp.'s senior secured debt, raised to B1 from B2, senior unsecured debt, raised to B2 from B3, and preferred stock raised to Caa1 from Caa2. The outlook is stable. Moody's also assigned a B2 rating to its new $250 million 9 7/8% senior unsecured notes due 2009 and a B1 rating to its new $715 million senior secured credit facility.

Moody's said the upgrades are based on the improving financial profile of Corrections Corp., including its strengthened ability to maintain its leadership position in the correctional property development, ownership and management businesses, its continued improvement in operating results, and its stronger financial profile.

A key factor supporting the upgrades is Corrections Corp.'s successful completion of the refinancing of much of its debt, which would have matured on Dec. 31, 2002, Moody's said.

This refinancing transaction will alleviate Moody's concerns regarding the refinancing risk that has burdened Corrections Corp.

S&P takes Echo Bay off watch

Standard & Poor's confirmed its ratings on Echo Bay Mines Ltd. and removed it from CreditWatch with negative implications. The outlook is stable. Ratings affected include Echo Bay's corporate credit at B-.

S&P said its action follows the completion of a share exchange.

S&P said it first put Echo Bay on watch pending the company's ability to secure a replacement credit facility when the previous bank facility expired in October 2001. It obtained a new credit facility for $17.0 million in revolving credit and $4.0 million in letters of credit.

On April 3, 2002, Echo Bay said it had completed an exchange of its outstanding capital securities and the related accrued interest obligation for 361.6 million common shares.

The successful completion of the transaction eliminates the major concern regarding the company's ability to pay the accrued interest of about US$80 million, which would have become due March 31, 2003, S&P added.

The current ratings reflect Echo Bay's below-average business position as a North America-based, midsize gold producer that has had to contend with the challenges of operating in the difficult gold pricing environment. In reaction to the low gold prices, the company has limited its exploration and development expenditures, which has dampened prospects for future production and reserve growth, S&P said.

S&P downgrades Banco Comercial

Standard & Poor's downgraded Banco Comercial SA and changed the CreditWatch to developing from negative.

Ratings affected include Banc Comercial's $100 million 8.25% bonds due 2007 and $100 million 8.875% bonds due 2009, both cut to B from BB-.

S&P upgrades Corrections Corp.

Standard & Poor's upgraded Corrections Corp. of America and removed it from CreditWatch with positive implications. Ratings affected include Corrections Corp.'s corporate credit rating, raised to B+ from B. S&P also assigned a B+ rating to the company's new $715 million secured credit facility and a B- rating to its new $250 million 9.875% senior notes B-. The outlook is stable.

S&P said its actions followed the completion of Corrections Corp.'s refinancing, relieving the company of onerous near-term debt.

The ratings reflect the company's high debt leverage, somewhat mitigated by its leading position in the correctional facility management and construction businesses and improved liquidity stemming from the terming-out of its debt maturities, S&P said.

S&P added that it expects the company to maintain cash coverage in the 2x area and leverage at or below 5x over the intermediate term.

Moody's confirms Quezon Power

Moody's Investors Service confirmed Quezon Power (Philippines) Limited Co.'s debt at Ba2, affecting $215 million of securities. The outlook is negative. The action concludes a review for possible downgrade begun in July 2001.

Moody's said the rating confirmation follows finalization of contract renegotiations with Meralco and satisfactory progress in rectifying the operational problems experienced by its power plant.

The rating also recognizes that the amended power purchase arrangements with Meralco will cause project cash flow and debt service protection measures to become more sensitive to operating performance of the plant, Moody's said. However the rating also reflects the fact that the renegotiated terms are ones which Meralco will be more inclined to honor and so should add a degree of predictability to future revenues, provided the operating performance of the plant improves on a sustainable basis.

However the negative outlook indicates that Quezon Power needs to demonstrate that recent improvements in plant performance are sustainable, Moody's said.

In addition, the negative outlook reflects the risk that developments in the Philippines' power sector reform may cause ongoing pressure on Meralco to further reduce its cost of power and so seek further amendments to the power purchase arrangement.

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