S&P rates Teva at BBB-

Standard & Poor's assigned a BBB- senior unsecured debt rating to Teva Pharmaceutical Finance B.V.'s $375 million of new convertible senior debentures due 2022, guaranteed by parent, Teva Pharmaceutical Industries Ltd. The outlook is stable.

The ratings reflect a position as one of the largest generic drug manufacturers in the world and a growing specialty-pharmaceutical franchise, partially offset by aggressive efforts to expand market presence, S&P said.

Teva is well positioned to benefit from the record number of major drugs losing patent protection in the U.S. during the next few years as nearly $60 billion of drugs will lose patent protection between 2002 and 2006, compared with $16 billion between 1997 and 2001.

The company also has one of the broadest generic drug pipelines, with 60 abbreviated new drug applications filed and awaiting FDA approval covering a major number of the drugs coming off patent protection through 2005.

S&P puts Playtex on watch

Standard & Poor's placed Playtex Products Inc.'s BB- long-term corporate credit and senior secured bank loan ratings, as well as the B subordinated debt rating on watch with developing implications.

Total debt at Sept. 30, 2002, was about $848 million.

The watch is in response to Playtex's decision to explore strategic alternatives to maximize long-term shareholder value. Playtex has hired J.P. Morgan Securities Inc. to act as financial adviser in this process.

Playtex management said it is considering four options, including the possible sale of the company, a merger with one or more parties, divestment of business lines, or the acquisition of strategic business lines.

Should management pursue selling the company or a merger, the ratings could be raised, lowered, or affirmed depending on the details, S&P said.

Moody's confirms Ford

Moody's Investors Service confirmed the Baa1 long-term rating of Ford Motor Co. and the ratings of Ford Motor Credit Co. The outlook remains negative.

The confirmation reflects the expectation that during the next 18 months Ford will make steady progress in reducing material costs as part of its restructuring program. Longer-term, it is highly likely that Ford will achieve a major portion (about two-thirds) of the $9 billion in restructuring improvements targeted by mid-decade.

A critical factor in the confirmation is the sound liquidity positions of both Ford's automotive operations and Ford Credit, Moody's said.

The negative outlook reflects three principal concerns - the restructuring program, pricing pressure in the U.S. market and the possible delay in operating performance rebound to 2005 or beyond if the U.S. economy weakens.

S&P rates Raytheon notes

Standard & Poor's assigned a BBB- rating to Raytheon Co.'s $225 million 4.50% notes due 2007 and $350 million 5.50% notes due 2012, plus affirmed its existing ratings. The outlook is stable.

The ratings reflect a very strong business profile, offset by a stretched financial posture, S&P said.

Proceeds from the new notes will be used to reduce senior credit facilities and to purchase assets from Raytheon Aircraft Co.'s off balance sheet financing facility.

Based on earnings projections for this year, the ratio of funds from operations to net debt is expected to be about 20%, weak for current ratings, but improved from a mid-teens percentage in 2001.

Debt to capital is in the appropriate mid-40% area.

At Sept. 29, Raytheon had $620 million of cash and equivalents. In addition, the company had $2.3 billion of committed corporate credit lines with no borrowings.

The most restrictive covenant is an EBITDA interest coverage ratio of at least 2.5x. In July, this covenant was amended to exclude a $450 million charge. Overall, there is reasonable cushion in financial covenants, S&P said.

Liquidity is satisfactory.

Fitch rates Raytheon notes

Fitch Ratings assigned BBB- ratings to Raytheon Co.'s $225 million senior notes due 2007 and $350 million senior notes due in 2012.

The outlook is stable, based on the strong performance of the defense businesses, offset by the high cash costs associated with discontinued operations and continued weak performance at Raytheon Aircraft Co.

Ratings reflect the recent financial performance of the defense segments, attractive defense industry environment, successful debt reduction program, solid liquidity position and healthy backlog. The ratings also consider a commitment to improving credit quality, as well as initiatives in working capital management, Fitch said.

Concerns center on continued cash outflows for discontinued operations, the performance and competitive position of Raytheon Aircraft, low credit statistics for the rating category and large debt maturities over the next four years.

Fitch rates Man Group exchangeables

Fitch Ratings assigned a rating of A- to the £400 million 3.75% guaranteed exchangeable bonds due 2009, issued by Forester Ltd. and guaranteed by Man Group plc.

Man has a leading franchise in alternative investment fund management and futures and options brokerage, both of which were bolstered in 2002 by the acquisitions.

At Oct. 31, funds under management totaled $23 billion.

The rating reflects the group's strong franchise, well-developed risk management function and solid profitability and cashflow, Fitch said. Profitability was confirmed by recently announced interim 2002 results in which pretax profits grew by 32%.

Moody's cuts Teco outlook

Moody's Investors Service confirmed Teco Energy Inc.'s senior unsecured debt rating at Baa2 but changed the outlook to negative from stable.

The convertible preferreds were confirmed at Baa3, along with other ratings.

The new outlook of the senior unsecured debt reflects the fact that TECO was unable to renew its $350 million 364-day bank credit facility, which matured Wednesday, and had to convert the facility to a one-year term loan.

Moody's rating outlook provides an opinion regarding the direction of any medium-term rating action, typically based on a 12 to 18 month time horizon.

While TECO's present liquidity situation is unchanged by the conversion of the credit facility to a one-year term loan, it indicates that it may be more difficult to replace the term loan with a new credit facility one year from now, unless TECO is successful in executing the plan of action it has outlined, Moody's said.

Moody's views the existence of the one-year term loan option in the credit facility as a positive, which has been important in maintaining financial flexibility and in giving the company sufficient time to execute its plan.

TECO is in the process of issuing $240 million of senior unsecured notes (rated Baa2) to refinance an existing issue of long-term debt on its balance sheet. Moody's views this refinancing as important in maintaining liquidity in the short-term.

Moody's expects TECO's liquidity and financial flexibility to improve following the refinancing of these bonds and repays $375 million of an equity bridge loan supporting its Gila and Union power projects in 2003.

Also, Moody's noted that TECO's the $200 million stock sale in October 2002 was a favorable development.

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