S&P: Eurotunnel unaffected

Standard & Poor's said that the agreement of a memorandum of understanding between the joint board of Eurotunnel SA and the ad hoc committee of creditors does not affect the BBB rating and CreditWatch negative status on the company's senior secured debt, or the ratings and CreditWatch status on Eurotunnel-related debt and notes issued by Fixed-Link Finance BV and Fixed-Link Finance 2 BV.

The agency said the memorandum of understanding outlines the restructuring of Eurotunnel's global debt.

The agency added it reiterates its concern about whether a global agreement on the debt restructuring will be possible.

Progress is, however, required to avoid debt defaults, as Eurotunnel will be unable to service all its debt after the minimum usage charge from the railways expires in November 2006, S&P said.

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