S&P cuts Corning ratings

Standard & Poor's Corp. on Tuesday cut Corning Inc.'s senior unsecured debt and corporate credit ratings to BBB from A-,' citing a rapid deterioration in global business conditions in all the company's major sectors. Corning's subordinated debt rating was lowered to BBB- from BBB+. S&P affirmed the company's A2 commercial paper and short-term corporate credit ratings. S&P revised Corning's outlook to negative from stable and said that while a modest recovery in telecommunications demand is likely in the second half of 2002 with more growth in 2003, any delay in the recovery could result in another ratings downgrade. Corning shares added 26c to $8.58.

Moody's puts Kmart on review for possible downgrade

Moody's Investors Service on Tuesday placed the ratings of Kmart Corp. on review for possible downgrade based on the continued challenge that the company faces in significantly improving profitability, inventory efficiency, and cash flow as it seeks to revitalize its business in a difficult competitive and economic environment. The review will focus on the financial impact, both positive and negative, from initiatives that are underway to improve the operations and working capital management and the potential for these improvements to have a significant benefit in reducing debt levels in a reasonable time frame. The review will also focus on understanding the sustainability of improvements that have already been made to its operations and the timing of further potential improvements. Kmart's senior unsecured Baa3 rating and the convertible Ba2 rating, along with others affecting $4.9 billion of debt, are on review. Kmart shares added 27c to $6.85.

S&P affirms PartnerRe ratings

Standard & Poor's Corp. on Monday removed from watch and affirmed it's a+ counterparty credit and A- preferred stock rating ratings of PartnerRe Ltd. S&P also affirmed its AA financial strength ratings on the operating subsidiaries of PartnerRe. The outlook is negative, S&P said. At the same time, S&P assigned an A+ preliminary senior unsecured debt, A preliminary subordinated debt and A- preferred stock ratings to PartnerRe.'s universal shelf registration filed on Oct. 6. The preliminary rating actions consider PartnerRe's pro forma Sept. 30 reduction in capital as well as management's commitment and expected ability to access capital markets to raise more than $350 million of permanent capital by the end of the year. The two planned securities totaling $350 million will both be treated as equity for capital modeling purposes, S&P said. The provisions of the convertible preferred issue allow it to receive equity credit in calculations of financial leverage. The trust preferred issue will receive hybrid treatment, with the portion contributing to preferred leverage above 15% recharacterized as debt. The issuance is expected to return the company's capital adequacy ratio to more than 165% by year-end 2001, S&P said. PartnerRe shares gained 63c to $50.88.

Moody's downgrades Asia Pulp & Paper

Moody's Investors Service downgraded Asia Pulp & Paper Co. Ltd., affecting $7.5 billion of securities. Among the ratings reduced were the senior unsecured debt, lowered to Ca from Caa3 and the subordinated debt and preferred stock, lowered to C from Ca. Included are APP International Finance Co. BV's secured global notes and euro MTN program, APP Finance (IX) Ltd.'s global notes, APP Finance (VI) Mauritius Ltd.'s LYONS, APP Finance (VII) Mauritius Ltd.'s convertible global bonds, APP International Finance (Mauritius) Ltd.'s global MTN program, PT Indah Kiat Pulp & Paper Corp.'s secured euro notes, Indah Kiat International Finance Co. BV's secured global notes, Indah Kiat Finance Mauritius Ltd.'s global bonds, Tjiwi Kimia Finance Mauritius Ltd.'s global notes, Pindo Deli Finance Mauritius Ltd.'s global bonds and APP China Group Ltd.'s senior unsecured notes, all lowered to Caa3 to Ca; and APP Global Finance (III) Cayman Ltd.'s euro notes backed by preference shares and APP Finance (II) Mauritius Ltd.'s preferred stock, both lowered to C from Ca.

Moody's said the downgrade reflects its concern that "creditor interests will be further impaired by the lack of progress on the debt restructuring program that was put in place in March 2001 when the APP Group announced a debt standstill."

The recent resignation of auditors Arthur Anderson "will further delay the availability of audited financial information, and in turn affect the progress of negotiations on debt restructuring," Moody's said.

It added: "The rating downgrade also reflects the deteriorated expected recovery rate and the apparent uncertainty in resolving creditors' claims under Indonesian law."

S&P downgrades Global Crossing, Asia Global Crossing

Standard & Poor's downgraded Global Crossing Holdings Ltd., Frontier Corp. and Asia Global Crossing Ltd.

Issues affected include Global Crossing's $900 million 9 1/8% senior notes due 2006, $1.1 billion 9½% senior notes due 2009, $1 billion 8.7% notes due 2007 and $800 million 9 5/8% senior notes due 2008, all cut to B- on CreditWatch Negative from BB-on CreditWatch Negative, its $500 million preferred stock cut to CCC+ on CreditWatch Negative from B on CreditWatch Negative, and its $1 billion secured bank loan, cut to B+ on CreditWatch Negative from BB+ on CreditWatch Negative, its $1 billion 6 3/8% cumulative convertible preferred stock, $500 million 7% cumulative convertible preferred stock and $1 billion 6¾% convertible preferred stock, all cut to CCC+ on CreditWatch Negative from B on CreditWatch Negative; Frontier Corp.'s $100 million 9% debentures due 2021, $300 million 7¼% notes due 2004 and $200 million 6% Dealer Remarketable Securities (DRS) due 2003, all cut to B- on CreditWatch Negative from BB- on CreditWatch Negative and Frontier's $6 million 5% cumulative preferred stock to CCC+ on CreditWatch Negative from B on CreditWatch Negative; and Asia Global Crossing's $408 million of 13 3/8% senior notes due 2010 to B- on CreditWatch Negative from B+ and CreditWatch Developing.

S&P rates IndyMac WIRES B+

Standard & Poor's rated the $150 million of Warrants & Income Equity Securities Units to be offered by IndyMac Capital Trust I at B+.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.