S&P puts Boral on watch

S&P said it placed its ratings on Boral Ltd., including its BBB issuer rating, on CreditWatch with negative implications.

The placement follows Seven Group Holdings Ltd. reporting it secured 40.95% of Boral's ordinary shares, the agency said.

“We placed the ratings on Boral on CreditWatch with negative implications because Seven's increased shareholding in Boral could act as a drag on Boral's credit profile. We apply our group rating methodology to assess whether ownership, control, influence, or support by or to another entity could have a material bearing on a company's credit quality. We expect to identify Seven as the group parent and Boral as a group member for analytical purposes,” S&P said in a press release.

The agency said it plans to resolve the CreditWatch in the next 90 days once it finalizes the assessment of Seven's group credit profile and determine the extent to which Boral may be insulated from Seven's influence.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.