S&P cuts Dana to junk

Standard & Poor's downgraded Dana Corp. to junk.

Ratings lowered include the company's senior notes and bank loan, both cut to BB from BBB-. The ratings were previously on CreditWatch with negative implications.

S&P puts Conseco on negative watch

Standard & Poor's put Conseco Inc. on CreditWatch with negative implications.

Ratings affected include: Conseco's senior notes rated B+ and Feline Prides rated CCC+; Conseco Financing Trust I's, Financing Trust II's, Financing Trust V's, Financing Trust VI's and Financing Trust VII's trust preferreds rated CCC+; Conseco Financing Trust III's capital securities rated CCC+; Conseco Financing Trust IV's Feline Prides rated CCC+; and Conseco Finance Corp.'s medium-term notes rated B- and senior subordinated notes rated CCC.

Moody's upgrades Charles River

Moody's Investors Service upgraded Charles River Laboratories, Inc. affecting $230 million of debt. Affected ratings include Charles River's $190 million of senior secured credit facilities, cut to Ba2 from Ba3, and its $150 million of 13.5% senior subordinated notes, cut to Ba3 from B2. The outlook was raised to positive from stable.

Moody's said the action reflects "the continued improvement in the company's credit profile, which is supported by increasing revenues and EBITDA, stable margins within each of its two business lines, strengthening cash flow from operations and a reduction in debt."

Moody's noted that since it upgraded Charles River in January 2001 the company has completed two follow-on equity offerings raising $117 million in proceeds, which were used in part to reduce debt, and has completed three acquisitions.

The positive outlook anticipates that Charles River will continue to grow revenues and EBITDA, "mostly through organic means but also supplemented by modest acquisition growth," Moody's said.

Moody's downgrades Formica, still on review for downgrade

Moody's Investors Service downgraded Formica Corp. and kept the company on review for possible further downgraded. Affected ratings include the company's $345 million secured bank credit facility, cut to Caa1 from B1, and its $215 million 10.875% senior subordinated notes due 2009, cut to Ca from B3.

Moody's said the downgrades reflect Formica's seven consecutive years of losses, "its excessive balance sheet leverage, thin interest coverage and negative tangible net worth, and its constrained liquidity."

Moody's said the ratings remain on review because Formica's waiver from its bank syndicate expires on Feb. 9, 2002. Unless extended further or the covenant violations are cured or the facility is amended, the company's liquidity "will be imperiled, resulting in further rating reductions."

Formica has "a clear reliance on external sources of funding, which are closed off at the current time," Moody's said, adding that the company's domestic assets are fully encumbered and the company has few alternatives by which to raise new cash.

Moody's rates new Wheeling Island deal B3

Moody's Investors Service assigned a B3 rating to Wheeling Island Gaming, Inc.'s proposed $125 million of senior notes due 2009. The outlook is stable.

Moody's said its rating incorporates the notes' effective subordination to all the company's and guarantor's senior secured debt, including Wheeling Island's new $40 million senior secured revolving credit facility; Wheeling Island's dependence on a single gaming site; an expected increase in competition over the longer term; development risk related to the company's expansion plans; and the company's relatively small size in terms of reported revenue and shareholder's equity.

Moody's anticipates debt/EBITDA will remain below 4.0 times during the expansion period and that most of the expansion capital expenditures will be funded with internally generated cash flow.

Fitch rates new Avista bond BBB-, downgrades existing debt

Fitch assigned a BBB- rating to Avista Corp's planned offering of first mortgage bonds and downgraded the company's existing senior secured debt to BBB- from BBB, its senior unsecured debt to BB+ from BBB- and its preferred stock to BB from BB+. Fitch changed the outlook to stable from negative.

Fitch said its action reflects Avista's "weak financial position and Fitch's assessment that even with constructive rate treatment in AVA's pending rate case, financial ratios will remain weak for the rating category through 2003."

The rating agency also noted that bank covenants within Avista Energy's bank facility currently limit Avista Corp.'s ability to receive dividends from this subsidiary.

S&P downgrades Carrier1

Standard & Poor's downgraded Carrier1 International SA, cutting its dollar and euro 12¼% senior notes due 2009 to C from CCC-.

Moody's withdraws SI ratings

Moody's Investors Service withdrew its ratings on SI Corp., Inc., formerly Synthetic Industries, Inc. The rating agency said that the private company has declined to provide it with sufficient information to maintain a rating.

Withdrawn ratings include SI's B1 rated $325 million senior secured credit facility, due 2006.

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