S&P downgrades Trump to D

Standard & Poor's downgraded the debt of various Trump entities to D from CC.

Among the ratings included in the action were: Trump Atlantic City Associates' $1.2 billion 11.25% first mortgage notes 2006, $75 million 11.25% first mortgage bond 2006 and $25 million 11.25% first mortgage bond 2006; Trump Atlantic City Funding II Inc.'s $75 million 11.25% first mortgage bond due 2006; and Trump Atlantic City Funding III Inc.'s $25 million 11.25% first mortgage bond due 2006.

Moody's lowers Chesapeake Corp., rates new deal B2

Moody's downgraded Chesapeake Corp.'s senior implied rating to Ba3 from Ba2. The rating agency also downgraded the company's senior unsecured debt ratings to B1 from Ba3.

Moody's also assigned a B2 rating to the company's proposed £90 million senior subordinated notes, adding that the actions affect approximately $305 million of debt securities.

"The ratings downgrade is based on lower realizations from recent asset sales than previously expected and a correspondingly higher level of longer term debt," Moody's stated.

The rating agency also said that at the end of the third quarter only $11 million of availability remained under the company's $250 million revolver. "Chesapeake believes it will have sufficient liquidity to meet all obligations during the fourth quarter, including a large tax liability, but could still violate one or more covenants in its existing bank agreement," Moody's commented.

The company is in the process of amending its bank facility to loosen covenants, and will issue £90 million in subordinated notes to repay bank debt and improve liquidity, Moody's said, adding that the B2

rating on the senior subordinated notes reflects their contractual subordination to unsecured notes, debentures, and industrial revenue bonds.

Fitch cuts Durango to B+

Fitch downgraded Corporacion Durango SA de CV's senior notes due 2006 to B+ from BB- and assigned a B+ to its senior notes due 2008 and a B+ to the senior notes of the company's subsidiary Grupo Industrial Durango, SA de CV due 2003. The outlook is stable.

Fitch said the downgrade reflects its expectation that in the near- to medium-term Durango's interest coverage measures will remain low and that the economic environment will not be conducive for materially reducing debt from cash flows from operations and by selling non-core assets as the company had originally planned.

For the nine months to Sept. 30, 2001, Durango's EBITDA-to-interest expense ratio was 1.5 times and its total debt to EBITDA was 4.9x compared to 2.1x and 3.7x for the same period of 2000, Fitch said.

"Due to the events of September 11, it is not likely that the company's interest coverage ratio will rebound in the near future as the prices for most paper and packaging products should remain under pressure," the rating agency added. "A recession in the United States should also exacerbate the economic slowdown in Mexico, further hindering the demand for the company's products in that market. With pressure on prices and volumes, debt should remain high, as Durango will not be able to use free cash flow from operations to reduce debt."

Moody's continues review of Kvaerner for possible downgrade

Moody's Investors Service said it is continuing its review for possible downgrade of Kvaerner plc, currently rated B3.

Moody's said its review will assess the implications for Kvaerner bondholders of the conditional refinancing plan announced by Kvaerner ASA, Yukos Oil Company and various financial investors for the NOK 9 billion debt of Kvaerner ASA, Kvaerner plc's parent.

If extended to Kvaerner plc's debt, the plan would offer bondholders redeemable, zero-coupon, 10-year subordinated convertible notes in exchange for their long dated eurobonds with nominal coupons of 10 7/8% (for the September 2014 maturity) and 10 5/8% (for the September 2006 maturity).

Ignoring the conversion option, the forced exchange would result in losses of more than 50% to bondholders, which, together with the subordinated status would indicate a Ca rating.

However if the debt of Kvaerner plc and its subsidiaries stay out of the restructuring, Moody's said Kvaerner ASA could emerge from the process with added financial flexibility, alleviating the current pressure on the B3 rating.

Moody's downgrades Viasystems sr sub notes to Caa3 from B3

Moody's Investors Service downgraded Viasystems Group, Inc.'s ratings, affection $1.1 billion of debt securities, including Viasystems' $500 million 9¾% senior subordinated notes due 2007, cut to Caa3 from B3, and its various bank loans, cut to B3 from B1. The outlook is negative.

Moody's said the downgrade is based on "the continued downturn in telecommunications capital equipment spending, and the impact that delayed product ramps are having on Viasystems' revenues and cash flow.

"Full recovery of principal is now in jeopardy, and has become the dominant factor in the rating on Viasystems' senior subordinated notes as the company's balance sheet, highly leveraged since the initial 1997 issuance of the notes, has deteriorated significantly after a succession of write-offs and restructuring charges since the beginning of the year," Moody's warned.

Stockholders' equity swung from $90 million as of Dec. 31, 2000 to negative $171 million as of Sept. 30, 2001, largely due to a $49 million inventory write-down, $139 million in restructuring and impairment charges and a $144 million write-off of a note received at the time of the company's initial public offering, Moody's added.

Moody's said it is concerned that "the senior subordinated notes' distressed trading levels would prompt Viasystems' banking group to demand a bond restructuring before acquiescing to any further covenant changes."

Moody's cuts York Funding to Caa1 from Ba3

Moody's Investors Service downgraded the $150 million of senior secured debt issued by York Funding (Cayman) Ltd. to Caa1 from Ba3 and removed the rating from review for further downgrade. The outlook is negative.

Moody's took the action in response to the Oct. 30 disclosure by York Research Corp. that the scheduled Oct. 30 payment of $10.3 million to bondholders was not paid.

Moody's said it does not anticipate the default will be cured during the 10-day grace period.

The rating agency said its Caa1 rating reflects its belief that the value of the collateral associated with the securities "is, in all likelihood, sufficient to repay bondholders principal at or near par."

Moody's puts Shoppers Acquisition on review for upgrade

Moody's Investors Service put the bank credit agreement of Shoppers Acquisition Corp. (now Shoppers Drug Mart Corp.) on review for upgrade, affecting $1 billion of Ba3 rated debt.

The rating agency said its action reflects the imminent initial public offering of 30 million common shares, proceeds of which will be used to repay the company's $525 million senior subordinated debt.

Moody's cuts Vantico senior notes to Caa1 from B3

Moody's Investors Service downgraded Vantico Group SA 12% senior notes to Caa1 from B3 and Vantico International SA's bank debt to B2 from B1, affecting €800 million of debt securities. The outlook remains stable.

Moody's said the downgrade reflects Vantico's "weaker than expected debt protection measures for 2001 and current concerns about the group's ability to materially improve these measures in 2002."

The rating agency added that its action also recognises the group's "vulnerability to the sharp downturn and lack of visibility in the electronics industry and the potential for increased competition in epoxy resins in the context of a deteriorating economic environment."

S&P cuts Weirton Steel

Standard & Poor's downgraded Weirton Steel Corp.

Ratings affected include the company's $125 mil 10.75% senior notes due 2005 and its $125 million 11.375% senior notes due 2004, both cut to C from CCC. The Weirton, W.Va. $56.3 million pollution control revenue refunding bonds series 1989 due 2014 were left at CCC and taken off negative watch.

S&P rates IMC Global add-on BB

Standard & Poor's said it rated IMC Global Inc.'s $75 million of senior unsecured notes due 2011 at BB.

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