S&P cuts Interpool ratings

Standard & Poor's lowered its ratings on chassis and marine cargo container lessor Interpool Inc., including the corporate credit rating to BB from BB+ and senior unsecured debt to B+ from BB-.

Ratings revised include the company's $150 million 7.35% notes due Aug. 1, 2007 and $75 million 7.2% notes due Aug. 1, 2007, both to B+ from BB-, S&P said on its Web site.

All ratings remain on CreditWatch with negative implications.

S&P said the downgrade reflects Interpool's weaker financial flexibility due to the continuing delay in filing its restated 2000 and 2001, and 2002 and 2003 audited financial statements.

While the company still has an adequate unrestricted cash position of more than $100 million, it has limited access to other funding sources until its audited financial statements are complete. As a result, it has had to forego some business opportunities in a strong demand environment.

S&P said Interpool's credit profile has been adequate for a transportation equipment leasing company, given its high percentage of long-term leases, which has resulted in relatively stable cash flow. The company has previously indicated that, for 2002, it expects to report a profit on revenues of about $320 million. It has also estimated equity at about $350 million at Dec. 31, 2002, although the amount will likely decline somewhat due to the various restatements it will have taken.

In addition, the company has a relatively strong unrestricted cash position of more than $100 million.

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