S&P: Sea Containers on watch

Standard & Poor's said it placed its ratings on Sea Containers Ltd. (BB-/Watch negative) on CreditWatch with negative implications following ongoing substantial losses at the company's ferry operations.

Affected ratings include the company's senior secured debt at BB and unsecured debt at B.

As a result, S&P noted, Sea Containers will take actions, expected to be announced by early October, which will result in nonrecurring charges that will likely further weaken the company's credit profile, which has already been negatively affected by a $25 million loss incurred in the first six months of 2005.

The agency said ratings reflect a relatively weak financial profile and financial flexibility. However, the company does benefit from fairly strong competitive positions in its major businesses.

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