S&P changes Sea Containers outlook to stable

Standard & Poor's said it revised its outlook on Sea Containers Ltd. to stable from negative, citing the company's improving earnings and diminished near-term refinancing risk, and concurrently affirmed the ratings on Sea Containers, including the BB- corporate credit rating and senior secured debt rating.

S&P said the ratings on Bermuda-based Sea Containers Ltd. reflect a relatively weak financial profile and financial flexibility, partially offset by fairly strong competitive positions in its major businesses.

Earnings from several of Sea Containers businesses have begun to improve, which has aided its credit ratios.

S&P said the company was successful in redeeming $158 million of debt securities that matured on July 1. Although the company has another $80 million of debt securities maturing in December 2004, it has committed to use proceeds from the sale of a portion of its Orient Express stake, if necessary, to redeem this debt. As a result, concerns regarding refinancing risk have been alleviated.

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