S&P rates new GATX convertible BBB-

Standard & Poor's assigned a BBB- rating to GATX Corp.'s $115 million convertible notes due 2023.

The ratings reflect strong market positions in specialty railcar leasing and aircraft leasing, fairly consistent railcar lease demand and long-term contracts that produce stable cash flow, offset by high debt leverage, reduced profitability and less financial flexibility, S&P said.

At June 30, GATX had adequate liquidity, with $227 million of unrestricted cash and $548 million available on three unsecured revolving credit facilities that mature through 2006.

S&P expects internally generated cash, credit facilities and equipment financings will be sufficient to meet capital spending needs and debt maturities over the intermediate term. Debt maturities in 2003 are $643 million and $365 million in 2004.

The outlook is stable.

Credit ratios are expected to improve modestly over the near-to-intermediate term, reflecting improving railcar leasing earnings, but could be offset by continuing pressure on aircraft leasing revenues, S&P said.

Fitch rates Finmeccanica exchangeable BBB

Fitch Ratings assigned a BBB senior unsecured rating to Finmeccanica Finance SA's new the €500 million 0.375% exchangeable notes due August 2010, convertible into STMicroelectronics NV, that are guaranteed by parent Finmeccanica SpA.

The outlook is stable.

Finmeccanica's stake in STM is a liquidity cushion to support its growth strategy in the core aerospace and defense businesses. In December 2001, Finmeccanica monetized a 3.4% share in STM for about €1.1bn to partly cover financing needs arising for its stake in a joint venture with MBDA, together with EADS and BAE Systems plc.

With the exchangeable, Finmeccanica is now leveraging on the STM stake as the new notes represent an attractive financial alternative at a time when interest rates are at a low point, Fitch said.

Fitch estimates that Finmeccanica's pro-forma net debt/EBITDA after the exchangeable notes issue will be in the region of 1.8x, up from 0.9x at fiscal yearend 2002 - consistent with the current ratings.

Fitch rates la Caixa convertible AA-

Fitch Ratings assigned an AA- rating to Caixa Finance BV's €847.6 million 0.25% convertible bond due 2006, which is guaranteed by parent Caja de Ahorros y Pensiones de Barcelona (la Caixa).

The bonds convert into shares of Endesa, the largest electricity utility operating in Spain.

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