S&P affirms Reno de Medici

Standard & Poor's said it affirmed Reno de Medici SpA's B long-term and B short-term corporate credit ratings and removed the ratings from CreditWatch, where they were placed on Nov. 22. The outlook is negative.

The ratings and outlook continue to reflect S&P's concerns about the company's operating performance. Notwithstanding some signs of a light recovery in the Italian economic environment, market conditions in the cartonboard industry remain tough, the agency said. The ongoing increase in energy prices could put pressure on 2006 earnings, as already seen in 2005.

Net financial debt at the end of 2005 was €228 million, down from €291 million in 2004. After the refinancing of the company's outstanding €145 million bond in May, net debt is expected to be reduced by €50 million, the agency said.

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