S&P: PSA on watch

Standard & Poor's said it placed its AAA corporate credit rating on PSA Corp. Ltd. on CreditWatch with negative implications after PSA announced a formal bid to acquire all the shares in Britain's Peninsular & Oriental Steam Navigation Co., (P&O, unrated) for £3.55 billion.

The agency said that although P&O has rejected a lower offer from DP World, a counter-bid and an increase in the bid price could still happen.

S&P said it believes that the acquisition could strengthen PSA's global market position and become the largest container terminal operator.

However, should PSA decide to rely significantly on debt to finance the acquisition, its financial profile could be materially weakened in the near to medium term, the agency noted.

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