S&P: Greyhound on positive watch

Standard & Poor's said it placed its ratings on Greyhound Lines Inc. on CreditWatch with positive implications, including the CCC+ corporate credit rating and the CCC- senior unsecured debt.

The action follows S&P's review on Greyhound parent company Laidlaw International Inc. and reflects the likelihood of rating actions on Greyhound following refinancing activities under way at Laidlaw, the agency said.

Laidlaw has launched a tender offer for publicly traded debt at Greyhound. If the debt tender is successfully completed, S&P said Greyhound ratings are likely to be withdrawn.

In the event that Greyhound's debt remains outstanding, S&P said it will reassess its ratings in light of the proposed easing of restrictions on Laidlaw's ability to financially support Greyhound. In that event, the agency said it would likely raise the ratings.

Greyhound's ratings reflect a very weak financial profile, and the agency said the public transit business is very competitive and has low barriers to entry, likely limiting the extent to which Greyhound will improve its operating performance.

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