S&P: Accor unaffected

Standard & Poor's said its ratings and outlook on Accor SA (BBB/negative/A-3) are unchanged following the company's announcement of its 2004 results and of various potentially credit-quality-supporting strategic initiatives.

S&P said Accor's full-year profits and cash flow generation, as reported under French GAAP, were roughly as expected, with a slight year-on-year improvement in lease-adjusted credit measures, although these remain weak for a BBB rating.

Accor's credit quality may slightly improve following on plans to materially increase its financial flexibility by selling a three-year €500 million mandatory convertible bond and a five-year €500 million convertible bond to its real-estate partner Colony Capital LLC, the ratings agency noted.

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