Moody's downgrades Covanta

Moody's Investors Service downgraded Covanta Energy Corp. including cutting its senior secured debt to Caa2 from Caa1 and subordinated debt to Ca from Caa2.

Moody's said it lowered the ratings after Covanta failed to make a $4.6 million interest payment due March 1 on its 9.25% senior debentures, resulting in a default.

The company has a 30 day grace period in which to cure this default, the rating agency said.

Although Covanta has enough cash on hand to meet this obligation, the banks providing its revolving credit will not extend existing covenant violation waivers if the company makes this interest payment, Moody's added.

S&P cuts Covanta

Standard & Poor's downgraded Covanta Energy Corp. Ratings affected include the company's $100 million 9.25% debentures due 2022, cut to D from B and its $75 million 5.75% convertible subordinated debentures due 2002 and $85 million 6% convertible subordinated debentures due 2002, both cut to D from B-.

S&P rates new Pride convertibles BB+

Standard & Poor's assigned a BB+ rating to Pride International Inc.'s recent issue of $250 million 2.5% convertible senior notes due 2007.

S&P rates Morgan Stanley's Siebel SPARQS AA-

Standard & Poor's assigned an AA- rating to Morgan Stanley's issue of $35.28 million 10% SPARQS mandatorily exchangeable for shares of Siebel Systems.

S&P lowers Kemper

Standard & Poor's downgraded Kemper Corp. including lowering its $230 million cumulative convertible preferred stock to BBB- from A-.

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