S&P: Waterford Wedgwood unaffected

Standard & Poor's said its ratings and outlook on Waterford Wedgwood plc (CCC+/negative/--) are unaffected by the group's announcement that it will initiate a major restructuring of its fixed-cost base, which will be funded by a proposed €100 million rights issue.

Although the planned €90 million restructuring spend should result in a much-needed further improvement of Waterford Wedgwood's cost position, S&P said the realignment of the fixed-cost base could still prove to be insufficient to restore financial health if the group's sales do not at least stabilize.

Given the ongoing very difficult industry trading conditions, S&P said it remains cautious about Waterford Wedgwood's sales and profitability prospects.

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