S&P: Hudson's Bay on developing watch

Standard & Poor's said it placed its ratings on Hudson's Bay Co.'s (HBC) on CreditWatch with developing implications, following the announcement today by Maple Leaf Heritage Investments of an all-cash offer for all of HBC's shares and its C$200 million 7.5% convertible debentures due 2008.

The ratings on HBC were originally placed on CreditWatch with developing implications Oct. 7, following the company's announcement that it was exploring alternatives for its financial services division, the agency said.

If the bid is successful and Maple Leaf overcomes such obstacles as financing the acquisition and successfully convinces HBC's board to waive its shareholders' rights plan, HBC's convertible subordinated debt will be redeemed and its ratings withdrawn, S&P noted.

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