S&P puts Russell on positive watch

Standard & Poor's said it placed Russell Corp.'s B+ corporate credit and senior secured shelf ratings, B senior unsecured debt and shelf ratings and B- subordinated shelf rating on CreditWatch with positive implications.

The CreditWatch placement follows the announcement that Berkshire Hathaway Inc. will acquire Russell's stock for $18.00 per share in cash. The transaction is estimated to be valued about $600 million and is expected to close in the third quarter of 2006, subject to stockholder and regulatory approvals.

S&P said resolution of the CreditWatch will depend on Berkshire Hathaway's disposition of the existing Russell bonds and its financial support after the acquisition.

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