S&P puts Outerwall on watch

Standard & Poor’s said it placed the ratings on Outerwall Inc., including the BB- corporate credit rating, on CreditWatch with negative implications.

The negative watch listing follows news that Outerwall’s board has approved doubling its dividends and has initiated a process to explore strategic and financial alternatives to maximize shareholder value, S&P said.

This shows that the company could adopt more aggressive financial policies, which may include a sale of the company in whole or in parts, cash returns to shareholders or a takeover by a financial sponsor, the agency said.

This could lead to a weakening in its credit measures, S&P said.

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