S&P: Ashtead Group unchanged

Standard & Poor's said its ratings and outlook on Ashtead Group plc (BB-/stable) were unaffected by the announcement of a potential acquisition of a U.S.-based competitor for about $1.0 billion.

According to the agency, the proposed acquisition includes a substantial equity component and this is significant enough to temper the impact of the deal on Ashtead's financial risk profile, thereby keeping it in line with the ratings.

S&P added that it also expects the company to continue to benefit from strong demand in the North American nonresidential construction market throughout 2006 and well into 2007.

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