S&P puts FG4, Saur on watch

Standard & Poor's said it placed on CreditWatch with negative implications its BB long-term corporate credit ratings on FG4 SA and Saur SA, which are respectively the finance subsidiary and the intermediate holding company of the Saur group.

The agency said that the CreditWatch placement follows the announcement by PAI, the private equity firm that owns the Saur group, that it is reviewing its strategic options with respect to the Saur group, adding that it believes that PAI's review could well result in an increase in the Saur group's already significant leverage.

The current ratings on FG4 SA and Saur SA reflect the group's leveraged financial profile and constrained financial flexibility, following its LBO in 2005, according to S&P, which added that these factors are offset by the group's strong operating performance and well-established position in the stable French water management market.

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