S&P affirms Wendel

Standard & Poor's said it affirmed the BBB-/A-3 long- and short-term corporate credit ratings on Wendel and removed them from CreditWatch with negative implications, where they were placed on Jan. 21.

The outlook is negative.

According to the agency, the affirmation reflects expectations that the group will adopt a more conservative investment strategy and will take actions to reduce leverage.

S&P said the affirmation also considers an expectation of an improved level of disclosure and adequate financial flexibility and liquidity.

Volatility on the financial markets leading to depressed share prices combined with the highly leveraged investment in Saint-Gobain, have put pressure on the company's gross asset value since the beginning of 2008 and partly offset the credit quality of the underlying assets, the agency noted.

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