S&P: Rank outlook negative

Standard & Poor's said it revised its outlook on Rank Group plc to negative from stable following a weaker-than-expected performance in the first half of 2004 and uncertainty concerning the group's future financial profile if Rank's film duplication and media services unit, Deluxe, is separated from the group.

S&P also affirmed its BBB-/A-3 corporate credit ratings on the group and its BBB- senior unsecured debt ratings on Rank and guaranteed subsidiary Rank Group Finance plc.

The outlook revision reflects S&P's concern for Rank's ability to maintain an investment-grade financial profile if the group decides to sell or demerge Deluxe. On the other hand, the ongoing weak profitability of Deluxe could still put pressure on Rank's financial profile if the business unit is not separated.

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