S&P cuts BE Aerospace outlook to negative

Standard & Poor's revised its outlook on BE Aerospace Inc. to negative from stable. S&P rates BE Aerospace's senior secured debt at BB+ and its subordinated debt at B.

S&P said the revision follows BE Aerospace's assessment of the impact on its business of the Sept. 11 terrorist attacks. The company expects volume to be down about 30%, leading to lower earnings and cash flow generation and weaker credit protection measures. In response, it announced a cost-reduction program, closing five production facilities and cutting the workforce by approximately 1,000 employees.

S&P said BE Aerospace's current liquidity position is "adequate," with cash balances of more than $100 million and "light" debt maturities.

S&P downgrades Doncasters, withdraws rating

Standard & Poor's said it downgraded Doncasters Ltd. corporate credit rating to BB- from BB and withdrew the rating at the company's request following the redemption of all its publicly traded debt.

S&P said the downgrade reflects concern that Doncasters' sales to the civil aerospace and auto industries are likely to be "significantly negatively affected" by the current slowdown in these markets.

S&P cuts Quality Stores to D

Standard & Poor's downgraded Quality Stores Inc.'s senior secured bank loan to D from CCC and its senior unsecured debt to D from CC.

S&P said the reduction follows the filing of an involuntary bankruptcy petition and the company's failure to make its October interest payment of $5.8 million on its senior notes.

S&P cuts Amazon.com outlook to negative

Standard & Poor's cut its outlook on Amazon.com to negative from stable and affirmed its ratings, including the B senior unsecured debt rating and the CCC+ subordinated debt rating.

S&P said the change is in response to its concern about "Amazon's decelerating revenue growth, which makes reversing its historical operating losses much more challenging."

The rating agency also said it was concerned that Amazon's cash position is declining.

Year-on-year, Amazon reported flat sales in the third quarter after "only" 15% growth in the second quarter and 22% in the first. The company also said it expects to have only $550 million of cash and marketable securities at March 31, 2002, which is below Standard & Poor's expectations and is less than the $643 million it had on the balance sheet at March 31, 2001.

S&P commented: "The ratings on Amazon.com reflect the risks of rapid growth in an evolving marketplace, ongoing operating losses, and a heavy debt burden. These risks are tempered by the company's position as the leading on-line retailer of books and music."

Moody's confirms Coinmach notes at B2

Moody's Investors Service confirmed its rating on Coinmach Corp. included its B2 rating on the company's $296.7 million of 11¾% senior notes due 2005. The outlook is stable.

Moody's said the confirmation reflects its expectation of "continued stable operating performance in Coinmach's core outsourced laundry services business despite a challenging economic environment."

It added that the steady performance is underpinned by the Coinmach's stable contractual revenue stream, based on long-term leases with a high renewal rate, a large installed base of laundry machines, and the resilient nature of laundry services with low sensitivity to fluctuations in economic conditions.

Moody's upgrades Fox Family Worldwide notes to Baa1 from B1

Moody's Investors Service upgraded Fox Family Worldwide, Inc.'s senior unsecured notes due 2007 to Baa1 from B1 following completion of Walt Disney Co.'s acquisition of the company from News Corp. and Saban Entertainment. Disney's senior unsecured rating is A3.

Moody's also withdrew its Ba2 senior secured rating on FCN Holding, Inc.'s bank credit facility as all outstanding debt was paid off at the close of the acquisition.

The rating agency also changed its outlook on the Disney, ABC, Inc. and Disney Enterprises, Inc.'s to negative from stable.

Moody's said it rates Fox Family one notch below Disney because there is no formal support or guarantee to noteholders. The two ratings will move in step with each other, the rating agency added.

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