S&P puts George Weston on watch

Standard & Poor's said it placed the BBB long-term corporate credit rating on George Weston Ltd. on CreditWatch with negative implications.

"The CreditWatch placement follows the company's announcement that its subsidiary, Dunedin Holdings SARL, is in discussions with Mexico-based Grupo Bimbo SAB de CV about the possible divestment of George Weston's U.S. fresh bread and baked goods business," S&P analyst Lori Harris said in a statement.

"The deployment of potential sales proceeds for privatization or acquisitions, combined with the absence of the EBITDA for the U.S. fresh baked goods business, could lead to higher debt levels and weaker credit protection measures," Harris added.

The issuer has an adjusted debt-to-EBITDA ratio of about 4.4x for the 12 months ended Oct. 4.

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