S&P puts Evergreen on watch

Standard & Poor's said it placed the B- corporate credit rating on Evergreen International Aviation Inc. on CreditWatch with negative implications.

The action reflects increased concerns over the company's vulnerability to profit pressures, given its constrained liquidity, limited covenant cushion and high debt service obligations, according to the agency.

Ratings reflect the company's participation in a cyclical, competitive and capital-intensive industry and its highly leveraged capital structure, the agency said.

The company's established position in certain narrow market segments and its long-standing relationship with many key customers somewhat offset these risks, S&P noted.

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