S&P puts Skylark on watch

Standard & Poor's said it placed its BBB- long-term corporate credit and senior unsecured debt ratings on Skylark Co. Ltd. on CreditWatch with negative implications.

The CreditWatch placement follows Skylark's announcement that it will conduct a management buyout through a tender offer for Skylark shares aimed at privatizing the company, the agency said, noting that Skylark will be delisted from the Tokyo Stock Exchange.

S&P added that the acquisition cost is expected to be over ¥270 billion, of which SNC Investment Co. Ltd. plans to raise ¥120 billion through bank loans and due to the expected increase in debt, Skylark may not be able to maintain its financial profile at a level adequate for the current rating.

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