S&P: Brink's on watch

Standard & Poor's said it placed its ratings on Brink's Co., including the BBB+ corporate credit rating, on CreditWatch with negative implications.

The CreditWatch placement follows the company's announcement that its board of directors has decided to spin off the Brink's Home Security unit into a separate, publicly traded company, the agency said.

S&P added that Brink's expects to complete the spin-off in a tax-free stock distribution to shareholders in the fourth quarter of 2008, noting that the proposed transaction will result in a loss of diversity and reduced cash flow and earnings streams for each company after the spin-off.

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