S&P puts Rivergroup on negative watch

Standard & Poor's said it placed its B- ratings on HM Rivergroup plc and its subsidiary, Riverdeep Interactive Learning USA Inc., on CreditWatch with negative implications based on S&P's concern about the ability of intermediate parent Riverdeep Interactive Learning Ltd. to issue upcoming financial statements on a timely basis.

The parent company has replaced its auditors following the resignation of Ernst & Young. Under the company's lending agreements, it must produce financial statements by March 31, which it expects it can do, the agency said.

However, a delay in issuing financial statements could lead to an event of default, unless lenders waive their rights relating to the company's reporting requirements, S&P said.

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