S&P: Rank on developing watch

Standard & Poor's said that it placed the B+ long-term corporate credit rating on Rank Group plc on CreditWatch with developing implications.

S&P also placed the B issue rating on the $14.3 million of notes due 2018 issued by Rank Group Finance plc on CreditWatch with developing implications.

The CreditWatch placement reflects the uncertainties surrounding Rank's future leadership, governance, financial policies and business strategy following the takeover by cornerstone shareholder Guoco Leisure Ltd., the agency said.

S&P said that it is possible that Guoco will obtain a 75% controlling interest in Rank, which may result in Rank being delisted from the London Stock Exchange and no longer being subject to the regulations of a U.K. publicly listed company.

The effects of both the change in executive management and the takeover on Rank's financial risk profile remain uncertain, the agency added.

The ratings on Rank reflect its exposure to a mature bingo hall market, tough macroeconomic conditions for U.K. and Spanish consumers and its currently aggressive lease-adjusted financial risk profile, the agency said.

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