S&P puts FastenTech on developing watch

Standard & Poor's said it placed its B+ corporate credit rating on FastenTech Inc. on CreditWatch with developing implications, affirmed its BB- bank loan rating and 1 recovery rating on its senior secured bank debt, along with its B- rating on the company's senior subordinated notes.

The listing follows the company's announcement in a regulatory filing that Doncasters Group Ltd. is acquiring FastenTech for $492 million in a transaction, which will include a tender offer of the company's currently outstanding senior subordinated notes due 2011.

S&P said it could either lower or raise FastenTech's corporate credit rating or affirm all ratings depending on the capital structure of the company immediately following the acquisition or its cancellation. Also, all ratings could be withdrawn upon FastenTech's requests once the acquisition closes, the agency said.

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