S&P: Falconbridge on developing watch

Standard & Poor's said it revised its CreditWatch implications on Falconbridge Ltd. to developing from negative, following the announced unsolicited C$17.8 billion cash and share offer by Teck Cominco Ltd. (BBB/Watch negative) for Inco Ltd.

Affected ratings include the company's corporate credit rating at BBB-/A-3, senior unsecured at BBB-, subordinated debt at BB+, preferred stock at BB and commercial paper at A-3.

The revision of the CreditWatch implications on Falconbridge reflects the array of possible rating outcomes for the company, whereby the ratings could be raised, lowered or affirmed, the agency said, noting that should Inco successfully acquire Falconbridge, the ratings on those two companies would be equalized.

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