Fitch keeps Interpool on watch

Fitch Ratings said it kept Interpool Inc.'s ratings on Rating Watch negative following the company's announcement that it entered into a definitive agreement to be acquired by private equity funds managed by affiliates of Fortress Investment Group LLC. Under the merger, all Interpool stockholders will receive $27.10 in cash for each share of Interpool common stock held and the total transaction value, including assumed debt, is about $2.4 billion.

Ratings on watch include Interpool's BB+ long-term issuer default rating, BB+ senior unsecured debt rating and BBB- senior secured credit facility, Interpool Containers Ltd.'s BB+ long-term issuer default rating and Interpool Capital Trust's BB- preferred stock rating.

The agency said that in its view, a sale of Interpool to Fortress may result in a weakening of Interpool's financial profile. Ratings could be lowered if Interpool's post-merger financial profile reflects higher leverage, weaker liquidity or reduced unencumbered revenue-generating assets.

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