S&P rates SuperValu convertible at BBB

Standard & Poor's has assigned a BBB rating to SuperValu Inc.'s $185 million (proceeds) of senior unsecured zero-coupon convertible liquid yield option notes due 2031, which rank pari passu with other senior unsecured debt. Proceeds will be initially used to reduce bank borrowings and to retire a portion of maturities in 2002, enhancing financial flexibility. At the same time, S&P affirmed its BBB long-term corporate credit and senior unsecured debt ratings, and its A-2 short-term corporate credit and commercial paper ratings on the company. The outlook is negative, S&P said. The ratings are based on SuperValu's position as one of the two largest national food wholesalers, mitigated by the less favorable dynamics of the food wholesaling industry and the company's weak retail operations, S&P said. SuperValu shares closed up 56c to $21.34.

S&P puts Biovail on watch, positive

Standard & Poor's placed its BB- corporate credit rating on Biovail Corp. on watch with positive implications, following the company's announcement of a strong third quarter operating performance and multiple licensing agreements with GlaxoSmithKline Plc. S&P said the rating reflects Biovail's success in the sale of its controlled release generic products, its increasingly diversified product portfolio, its solid drug-delivery technology platform, and growing sales and marketing base in the U.S. and Canada. The rating also considers the risks associated with the company's rapid expansion, with particular regard to the effective management of an enlarged sales force. Biovail's shares closed off 22c to $47.26.

S&P affirms NTT long term ratings, outlook negative

Standard & Poor's on Wednesday affirmed its AA long-term and A-1+ short-term ratings on Nippon Telegraph & Telephone Corp. The outlook on the long-term rating is negative. S&P said the rating takes into account pressures in the traditional local fixed-line business, the possibility that the group's strength will be eroded by future reorganization and the group's efforts to implement structural reforms, including reducing labor costs. Nippon T&T shares closed up 5c to $20.91.

Moody's rates King Pharmaceuticals proposed converts at Ba1

Moody's Investors Service assigned a Ba1 rating to King Pharmaceuticals Inc.'s proposed convertible debentures, and upgraded its senior implied rating and senior secured credit facility. The rating outlook is positive, Moody's said. The King Pharmaceutical deal is set to price after market close Wednesday. King Pharmaceutical shares closed up $2.54 to $38.99.

S&P rates King Pharmaceuticals proposed converts at BB

Standard & Poor's rated King Pharmaceuticals Inc.'s planned $300 million convertible debentures offering at BB.

S&P said the ratings reflect the continued success of King's lead product, the cardiovascular drug Altace, as well as its increasing sales diversity, growing financial flexibility and improved financial profile, offset by the risks inherent in a growth-by-acquisition business strategy.

The rating agency noted that the sales success of King's products has enabled it to aggressively repay debt incurred in the acquisition of Altace, cutting obligations by over $190 million in the last 12 months. Its last purchase, four products from Bristol-Myers Squibb for $285 million, did not need additional debt.

However S&P noted King is reliant on acquisitions given it does not have a significant internal research program.

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