Trism files for Chapter 11

Trism, Inc. said it filed for reorganization under Chapter 11 of the bankruptcy code in the the U.S. Bankruptcy Court for the Western District of Missouri. The filing also covers Trism's subsidiaries.

The Kennesaw, Ga. transportation company said its filing was prompted by recent high fuel costs, difficulty obtaining qualified drivers, industry-wide increases in insurance premiums and reduced shipping demand.

Trism said it expects to continue business with debtor-in-possession financing pending a sale of the company.

Moody's rates EchoStar new notes B1

Moody's Investors Service assigned a B1 rating to the planned new issue of senior unsecured notes due 2009 by EchoStar DBS Corp. and confirmed the existing ratings of EchoStar DBS' parent EchoStar Communications Corp. and its subsidiaries. The outlook is still developing. Among the $5.7 billion of debt covered by the announcement is EchoStar Communications' 4 7/8% convertible subordinated notes due 2007 and its 5¾% convertible subordinated notes due 2008, both rated Caa1, EchoStar Broadband Corp.'s 10 3/8% senior unsecured exchangeable notes due 2007 rated B1, and EchoStar DBS Corp.'s 9 ¼% senior unsecured notes due 2006 and 9 3/8% senior unsecured notes due 2009, both rated B1.

Moody's said the ratings reflect EchoStar's "high financial leverage and low interest coverage; heavy capital expenditures for ongoing satellite construction and launch, as well as subscriber acquisition costs (whether or not they are capitalized); the likelihood of an increasingly competitive operating environment, and corresponding implications for potentially higher subscriber churn levels; lingering uncertainties, including the questionable adequacy of the company's self-insurance practices for its satellite fleet and near-term satellite capacity availability to ensure compliance with local signal must-carry requirements on January 1, 2002 in the absence of an adverse impact on customer service; and numerous new uncertainties related to the proposed merger agreement with Hughes/PanAmSat, including regulatory, execution and integration risks, among others."

However, Moody's said support for the ratings comes from EchoStar's large and growing size; the implicit collateral coverage of its existing deployed satellite fleet, ground network infrastructure, and orbital slot licenses; the near-term stability provided by the to-be-acquired PanAmSat business; good EBITDA growth already (albeit largely driven by leased vs. expensed subscriber equipment) and the prospect of further operational improvements, including substantial cost savings and revenue enhancing opportunities resulting from the proposed merger with Hughes and its DirecTV assets in particular; and good access to the capital markets, as well as a still meaningful equity cushion (including existing common equity, new shares to be issued in connection with the pending transactions, and new convertible preferred capital to be raised early next year from Vivendi) that provides downside protection for the company's creditors.

S&P rates new EchoStar notes B+, puts ratings on positive watch

Standard & Poor's rated the planned new senior notes notes of Echostar DBS Corp. B+.

The rating agency also changed the CreditWatch on EchoStar's other issues to positive from developing. Affected debt includes EchoStar Communications Corp.'s $1 billion of 4.875% convertible subordinated notes due 2007 and its $1 billion of 5.75% convertible subordinated notes due 2008, both rated B-; and Echostar DBS Corp.'s $375 million of 9.25% senior notes due 2006 and its $1.625 billion of 9.375% senior notes due 2009, both rated B+.

S&P downgrades Philippine Long Distance

Standard & Poor's downgrade Philippine Long Distance Telephone Co. including cuttings its medium-term notes to BB- from BB+.

S&P cuts Oxford Automotive to D

Standard & Poor's downgraded Oxford Automotive Inc.'s $125 million of 11.125% senior subordinated notes due 2007 and its $40 million of 10.125% senior subordinated notes due 2007 to D from C.

S&P cuts Brill Media to D

Standard & Poor's cut Brill Media Co. LLC's $105 million of 12% senior notes due 2007 and Brill Media Management Inc.'s $105 million 12% senior notes due 2007 to D from CC.

Moody's confirms Comstock Resources

Moody's Investors Service confirmed Comstock Resources' ratings including its upon its $145 million of 11.25% senior unsecured notes due 2007 at B2. The outlook is stable.

The action follows Comstock's acquisition of DevX Energy, Inc.

Although the outlook is stable, Moody's said sustained weak prices could lead to a negative rating outlook given Comstock's "full leverage on reserves for the rating and need to demonstrate sustainable production gains."

Moody's said it would be looking for improved volume trends, satisfactory year-end 2001 reserve bookings and unit replacement costs, and/or sound prices to "more firmly establish a stable ratings outlook."

Moody's downgrades Fairfax Financial

Moody's Investors Service has downgraded the senior debt ratings of Fairfax Financial Holdings Ltd. to Ba2 from Baa3 and the senior debt rating at TIG Holdings, Inc. to Ba3 from Baa3. The actions, affecting $1.4 billion of debt, conclude a review begun on Nov. 6. The outlook remains negative.

Moody's said the downgrade reflects the "company's poor operating earnings over the past several years, continued adverse reserve development at its US primary operations, substantial negative operating cash flows, weakened capitalization, and also the significant financial leverage at the holding company."

The continued poor performance highlights the risks associated with Fairfax's rapid growth through acquiring underperforming insurers and reinsurers, Moody's said.

"Efforts to re-underwrite and re-price the business should contribute to some profitability improvement over the medium term, but recovery is likely to be gradual," it added.

S&P downgrades Loral CyberStar

Standard & Poor's downgraded Loral CyberStar Inc., including cutting its $445 million of 11.25% senior notes due 2007 and its $265 million 12.5% discount notes due 2007 to C from CCC. S&P also put the ratings on CreditWatch with negative implications.

S&P downgrades Impsat

Standard & Poor's downgraded Impsat Fiber Networks Inc.'s $125 million of 12.125% guaranteed notes due 2003 to CC from CCC-. The notes remain on CreditWatch with negative implications.

S&P downgrades Touch America

Standard & Poor's downgraded Touch America Inc. including lowering its $400 million secured bank loan due 2005 to CCC+ from B-. The ratings remain on CreditWatch with negative implications.

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