Moody's cuts outlook on El Paso Energy

Moody's Investors Service lowered its outlook on El Paso Energy Partners, LP to stable from positive and confirmed the company's ratings, including its Ba2 long-term senior implied ratings and B1 senior subordinated ratings.

Moody's said its action follows El Paso Energy's announcement it will acquire intrastate gas pipelines in Texas and gas gathering and processing systems in Texas and New Mexico from a subsidiary of El Paso Corp., El Paso Energy's general partner, for $750 million.

"This is a large acquisition, and the roughly $560 million of bridge financing will increase EPN's debt by more than half," Moody's said.

The ratings and outlook anticipate that a significant portion of the bridge debt will be refinanced with equity in the ensuing months to reduce debt, Moody's added but noted the rating may be pressured if debt is not reduced in a timely manner.

Moody's downgrades Agrokor, rates new notes B1

Moody's Investors Service downgraded Agrokor DD, including cutting its unsecured issuer rating to B2 from Ba3, and assigned a B1 rating to its proposed offering of €150 million in senior guaranteed secured notes. The outlook is stable.

Moody's said it cut Agrokor's ratings because of material execution and integration risks associated with the company's food retail expansion strategy, particularly in light of weak historical operating performance, increasing competitive pressures in Agrokor's domestic markets, significant exposure to exchange rate fluctuations, through continued reliance on imports, as well as substantial dollar- and euro-denominated liabilities and the continued pressure on cash flows exerted by the company's agriculture business.

Moody's rates new Concordia Bus notes B3

Moody's Investors Service assigned a B3 rating to Concordia Bus AB's planned offering of senior subordinated notes. The outlook is negative.

Moody's said its assessment of Concordia Bus is based on "the predictable nature of the company's cash-flows, its strong market position, increased profitability of new bus transportation contracts and an accelerated cost cutting program."

However it said the company is highly leveraged, has tight cash flow coverage and the notes have deep structural and contractual subordination.

S&P puts Song Networks on watch

Standard & Poor's put Song Networks NV on CreditWatch with negative implications. Ratings affected include Song's $150 million 13% notes due 2009, €100 million 13% notes due 2009, €150 million 11.875% notes due 2009 and €175 million 12.375% notes due 2008, all rated CCC.

S&P said it took the action because of heightened concerns about Song's liquidity and its diminishing financial flexibility, resulting in a need for additional funding in the short term

Song continues to have high cash spending even though revenues showed a quarter-on-quarter decline, S&P noted. In addition, the rating agency said there are uncertainties about when Song will achieve EBITDA and cash flow breakeven.

During the fourth quarter, Song's revenues declined 1% quarter-on-quarter to SEK621 million and cash drain was SEK421 million, including positive working capital movements of SEK706 million, S&P said, adding that the positive trend in working capital is not expected to continue.

S&P cuts Teesside Power to D

Standard & Poor's said it downgraded by Teesside Power Financing Ltd.'s senior secured debt to D from BB including its £35 million 10.2073% notes due 2008, $101.81 million 9.86% notes due 2008 and $19.39 million floating-rate notes due 2008.

S&P said it cut Teesside Power's notes in response to the non-payment of interest and principal due on Dec. 15, 2001.

After Enron Europe Ltd.'s entry into administration on Nov. 28, 2001, the company is unlikely to honor liabilities under power purchase agreements to Teesside Power, S&P said.

Fitch downgrades Philippine Long Distance

Fitch Ratings downgraded Philippine Long Distance Telephon's senior unsecured foreign currency rating to BB- from BB+ and put it on Rating Watch Negative.

Fitch said the downgrade is in response to Philippine Long Distance's continuing high leverage -management estimates total debt to EBITDA was 5.3 times at December 2001 - and the liquidity risk arising from the need to refinance $1.34 billion of debt maturing from 2002 to 2004 including $364 million in 2002.

"Adequate facilities are not yet in place to supplement cash flow and to meet those refinancing obligations as and when they fall due and PLDT presently has limited financial flexibility to address circumstances that might arise to threaten its position," Fitch said.

However the rating agency noted the Philippine Long Distance is negotiating with alternative credit providers and that management expects a positive outcome.

S&P cuts CableVision SA to D

Standard & Poor's lowered the local and foreign currency corporate credit ratings of CableVision SA to D from CC and SD respectively. It affirmed CableVision's senior unsecured debt.

S&P said its action follows CableVision missing the principal maturity payment on its $100 million floating rate notes due Feb. 15, 2002.

"CableVision's financial flexibility is severely constrained by the default, as well as the deterioration of available credit due the political and economic uncertainties, and the onerous interest payments that the company has to face in 2002," S&P said. CableVision has $70 million in revolving short-term bank lines but needs to pay coupons of $6 million in March and $36 million in May.

S&P noted CableVision made the interest payment on the floating-rate notes due Feb. 15, 2002 and has asked noteholders to defer the capital payment for 120 days while the terms are renegotiated. This request has not been granted yet.

S&P cuts Aguas Argentinas to D

Standard & Poor's downgraded its foreign currency rating on Aguas Argentinas SA's $108 million senior unsecured bank loan due 2005 to D from CC after it failed to pay interest due.

S&p said Aguas' financial and economic performance has been negatively affected by the pesification of tariffs and the unsettling devaluation of the Argentine peso during 2002, dramatically weakening its debt repayment capacity due to the mismatch between the now peso-denominated generated cash and the mostly dollar-denominated debt.

S&P cuts Galey & Lord to D

Standard & Poor's downgraded Galey & Lord Inc.'s corporate credit rating to D from CC.

S&P said its action follows the company's Chapter 11 filing.

Also affected are Galey & Lord's $300 million 9.125% senior subordinated notes due 2008, cut to D from C, and its $225 million revolving credit facility due 2004, $155 million term B loan due 2005 and $110 million term C loan due 2006, all cut to D from CC.

S&P cuts Iasis Health

Standard & Poor's downgraded Iasis Healthcare Corp. and kept the company on negative outlook.

Ratings affected include Iasis' $230 million 13% senior subordinated notes due 2009, cut to CCC+ from B-, and its $80 million term loan A due 2004, $125 million revolving credit facility due 2004 and its $190 million term loan B due 2005, cut to B from B+.

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