S&P revises Nexstar Broadcasting outlook revised to negative

Standard & Poor's revised its outlook on Nexstar Broadcasting Group LLC to negative from stable and affirmed the company's existing ratings.

S&P said the revision is based on "concern that the softer than anticipated advertising environment could weaken Nexstar's credit measures below the level appropriate for the rating."

The rating agency also said it was concerned about whether the company would comply with bank financial covenants in the second half of the year.

Among S&P's rating on the company and its units is its B- rating on the senior unsecured debt of Nexstar Finance Holdings Inc. and Nexstar Finance Holdings LLC and its B+ senior secured and B- subordinated debt ratings on Nexstar Finance Inc. and Nexstar Finance LLC.

S&P rates Luscar Energy BB, outlook stable

Standard & Poor's assigned BB ratings to Luscar Coal Ltd.'s proposed $250 million senior unsecured notes due 2011, set to price Oct. 5. S&P also rated Luscar Energy Partnership's senior unsecured debt BB. The outlook on both ratings is stable, according to the report.

"The ratings reflect Luscar's below average financial profile offset by its leading domestic market position as Canada's largest coal producer," the rating agency stated.

Characterizing the company's current financial policy as "somewhat aggressive," the S&P report cited Luscar's debt to capital ratio as being "in the high 40% area," adding that "management has stated its longer term intentions to reduce this ratio to below 40%."

The company's financial flexibility is adequate given the company's C$100 million bank credit facility and its expected ability to generate free cash flow, the report added.

Luscar is a midsize coal producer (eighth largest in North America) operating 10 surface coal mines located in Saskatchewan, Alberta, and British Columbia, with total annual sales of 37.4 million tonnes in 2000, the ratings agency said.

S&P rates Millipore's planned $250 mln credit facility BB+

Standard & Poor's said it assigned a BB+ rating to Millipore Corp.'s proposed $250 million senior unsecured revolving credit facility. S&P said the new credit facility will replace the company's existing bank facility and is expected to be used to refinance the company's $100 million notes due in 2002. The rating agency also affirmed its BB+ corporate credit, senior unsecured debt, senior unsecured bank loan and preliminary senior unsecured shelf ratings on the company. The outlook remains positive.

S&P said Millipore's ratings continue to reflect its "strong position in several business segments, its relatively predictable revenue stream, and geographic diversification offset by technology risk and a leveraged capital structure."

It noted management will be challenged to control the business as Millipore expands, particularly given strong competition and changing technology. Consolidation in the pharmaceutical industry and government budget pressures are likely to constrain health care and research spending, S&P added.

S&P downgrades Brill Media, warning of lack of liquidity

Standard & Poor's downgraded Brill Media Co. LLC and Brill Media Management Inc. to CC from CCC based on "the company's lack of liquidity and heightened default risk." The outlook is negative.

S&P said it has "significant concerns" over the company's ability to meet its $6.3 million interest payment on Dec. 15, 2001. Although asset sales may provide temporary relief, difficult market conditions and the nature of Brill's assets could make this "challenging" and limit the proceeds, S&P said.

S&P described liquidity as "very weak," saying the company had cash balances of about $500,000 in mid-July and no availability under its bank facility.

Operating results and cash flow have been "very poor" and are expected to worsen as a result of the terrorist attacks in the U.S. on Sept. 11, S&P added.

S&P upgrades America West Ratings, puts on CreditWatch negative

Standard & Poor's upgraded America West Holdings Corp. and subsidiary America West Airlines Inc. except for its insured enhanced equipment trust certificates. But the rating agency revised its CreditWatch to negative from developing.

S&P said it took the action after the company received $60 million of federal aid on Sept. 26, about one-half of the total, with the balance expected within the next week or so.

The rating agency said the infusion will help the company's liquidity since it otherwise had less than $80 million of cash, was fully drawn on its revolving credit facility, and leased most of its aircraft.

S&P noted America West is pursuing other asset-based financings to improve liquidity but added that the airline is "operating at a reduced capacity level, with revenues generated significantly below operating costs, resulting in widening losses."

Among the upgrades are America West's senior unsecured debt which rises to CCC- from CC.

Moody's downgrades Phar-Mor after bankruptcy filing

Moody's Investors Service downgraded Phar-Mor, Inc.'s ratings including dropping its $41.3 million of 11.72% senior unsecured notes due September 2002 to Caa3 from Caa1, after the company filed for bankruptcy. The outlook is negative.

Moody's said the company has "uncertain prospects" given its high leverage, "geographic concentration in a few slow-growth markets, and the rigorous competitive environment for prescription drugs and general merchandise. However, the company's important market position in a few areas and relatively modern store base continue to be strengths of the company."

The rating agency said its Caa3 assessment "reflects our opinion that current operating performance reduces potential reorganization value and the notes are expected to suffer substantial impairment in spite of the guarantees provided by the operating subsidiaries."

Moody's cuts Dairy Mart after bankruptcy filing

Moody's Investors Service said it downgraded Dairy Mart Convenience Stores, Inc.'s ratings including its $88.5 million of 10.25% senior subordinated notes due 2004 to Ca from Caa2 after the company filed for bankruptcy. The outlook is negative.

Moody's said the downgrade reflects the "uncertain prospects" for the company, its highly leveraged financial condition, the limited liquidity buffer available to the company, and its aging store base.

The rating agency added: "The ratings also consider the lack of pricing power in the company's two most important product categories, since wholesale and retail prices of gasoline and tobacco move according to macro-economic trends largely outside the control of any single company. However, the regionally recognized trade name could be a continuing strength of the company."

Moody's anticipates "substantial impairment" of the notes.

S&P changes outlook on Alliance Laundry to negative

Standard & Poor's revised its outlook on Alliance Laundry Systems LLC, from stable to negative, Friday. The company's B corporate credit and bank loan ratings were affirmed, as was the CCC+ rating on Alliance's subordinated debt, according to the rating agency's report.

Stating that the company's total debt was about $335 million, as of June, 30, 2001, S&P said it expects the company's credit protection measures to remain weak for fiscal 2001 given the soft economy. The company's financial flexibility is tight given certain limitations under the senior credit facility, with availability of about $9 million under the company's $75 million revolving credit facility at June 30, 2001, it added.

"The ratings for Alliance Laundry reflect its high debt leverage and weak operating performance following the acquisition and recapitalization of the company from Raytheon Co., partially offset by Alliance Laundry's solid market position in the small category of commercial laundry equipment," the

S&P report said.

The Ripon, Wis.-based company serves end-user customer groups with laundromats, multihousing laundries, and on-premise laundries," the report stated.

S&P affirms Titanium Metals, removes from CreditWatch

Standard & Poor's said it affirmed ratings on Titanium Metals Corp. and removed them from CreditWatch where they were placed with positive implications on Sept. 21, 2001. The outlook is stable.

S&P said it affirmed the ratings and took them off CreditWatch after Valhi Inc. withdrew its proposal to TIMET to exchange Valhi's common shares of NL Industries (held by Valhi and Tremont Corp.) for a combination of newly issued shares of TIMET common stock and TIMET debt securities.

S&P rates Titanium Metals' preferred stock at CCC.

S&P downgrades Moll Industries, puts on CreditWatch negative

Standard & Poor's cut its ratings on Moll Industries Inc., AMM Holdings Inc., and Anchor Advanced Products Inc. and placed the ratings on CreditWatch with negative implications.

S&P said the downgrades follow Moll's announcement that it has commenced a tender offer to purchase up to $66.5 million of its 10.5% series B senior subordinated notes due 2008 ($116.5 million outstanding). Holders of notes validly tendered and not withdrawn will receive $200 per $1,000 principal amount of notes that are accepted. Moll also announced a consent solicitation to eliminate almost all the covenants as well as the default provisions.

S&P said it would consider completion of the tender offer as a default, given that the value of the proposed payment is substantially less than the originally contracted amount. If the transaction is consummated as proposed, Standard & Poor's will lower the corporate credit rating to SD and the rating on the 10.5% notes will be lowered to D.

Among the ratings affected, S&P cut Moll Industries subordinated debt to C from CC and its senior secured debt to CCC from CCC+; AMM Holdings Inc.'s senior unsecured debt to C from CC and Anchor Advanced Products Inc.'s senior secured debt to CC from CCC.

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