S&P downgrades NTL

Standard & Poor's downgraded NTL Inc.

Ratings affected include: NTL Communications Corp.'s corporate credit rating, cut to B- with a negative outlook from B+ with a stable outlook; its notes, senior notes and bonds, cut to CCC from B-; its convertible subordinated notes, cut to CCC from CCC+; NTL Communications Ltd.'s bank loan, cut to B from BB-; NTL Inc.'s exchangeable preferred stock, cut to CCC- from CCC, and its subordinated convertible notes, cut to CCC from CCC+; NTL Business Ltd.'s bank loan, cut to B from BB-; NTL Triangle Ltd.'s $300 million 11.2% senior discount debentures 2007, cut to CCC from B-; Diamond Cable Communications plc's senior discount notes cut to CCC from B-; and Diamond Holdings plc's notes, cut to CCC from B-.

Moody's rates Pegasus Satellite planned notes B3, cuts outlook to negative

Moody's Investors Service assigned a B3 rating to Pegasus Satellite Communications' planned offering of senior unsecured notes and withdrew its B3 rating on the existing 12½% guaranteed senior subordinated notes due 2005 of subsidiary Pegasus Media & Communications which will be called with proceeds from the new offering. Existing ratings were confirmed but Moody's cut the outlook to negative from stable. Moody's rates Pegasus' existing senior notes at B3, its senior subordinated notes at Caa1, its preferred stock at Caa3 and Pegasus Media & Communications' bank debt at B1.

Moody's said it lowered the outlook because of the proposed merger of EchoStar Communications and Hughes Electronics. That merger reduces the likelihood that Pegasus and the other remaining NRTC-affiliate companies will be re-consolidated back into the DirecTV fold, Moody's said.

"Importantly, exactly the reverse expectation had previously been a meaningful factor supporting the ratings historically," the rating agency commented. "Specifically, the ratings had always factored in our belief that the intrinsic underlying value of the company's assets to DirecTV (in particular, and perhaps singularly) was quite high, particularly given the large size to which Pegasus' and the broader NRTC-affiliate subscriber bases had grown, and the dramatically enhanced economic returns to be realized with full ownership in comparison to the mere 5% of revenue (putting aside premium programming for the time being) royalty stream that was and is still currently remunerated to DirecTV through the NRTC."

Moody's cuts Mandalay Resort outlook to negative

Moody's Investors Service lowered its outlook on Mandalay Resort Group to negative from stable and confirmed the company's ratings. Affected debt includes the senior unsecured debentures and notes at Ba2 and the senior subordinated debentures and notes at Ba3.

Moody's said the outlook change reflects "the increased risk of earnings volatility due to the weak economy, lingering safety concerns regarding air travel, as well as the uncertain political environment related to the potential for more terrorist attacks, and the ongoing war."

It also noted the company has been "aggressively" repurchasing its stock and has growth plans that will use up the majority of the its free cash flow.

Moody's rates International Specialty new notes at B2

Moody's Investors Service assigned a B2 rating to International Specialty Holdings Inc.'s new senior secured notes and confirmed the existing ratings of the International Specialty Products group. The outlook is stable. The $1.4 billion of debt affected includes the new offering, ISP Chemco Inc.'s add-on to its senior subordinated notes due 2011 at B2, ISP Chemco's credit facilities at Ba2 and its existing senior subordinated notes due 2011at B2; and International Specialty Products, Inc.'s $308 million senior guaranteed notes due 2003 at B2.

Moody's notes that the B2 rating of International Specialty Holdings' $200 million of senior secured notes is the same as the rating of the senior subordinated notes of ISP Chemco, even though they are structurally subordinated to the notes of ISP Chemco. "This is due to the potential support of the investment portfolio assets of ISP Investco LLC, a subsidiary of Holdings," Moody's said.

It added: "The ratings continue to reflect high leverage, lower operating earnings and lower return on assets from prior levels, significant intangibles, and foreign exchange fluctuations (about 40% of sales are non-dollar denominated), and recognize the margin debt at ISP Investco LLC (Investco). The ratings also reflect increasing global capacity of butanediol in 2002 with new lower cost technology, the company's aggressive security investment practices, the large amount of risk arbitrage investments, potential lack of liquidity of the investments, and the little detail that is available regarding the investments."

On the positive side, they recognize "ISP Chemco's good gross and operating margins, its diversified specialty chemical product portfolio and broad customer base, good market positions in its product niches, and the relative stability of its consumer end markets. Other positive considerations include on-going research and development of new products, experienced management, successful past acquisition integration and probable future small bolt-on acquisitions, and a sustained record of upstreaming cash from operating subsidiaries to service debt."

S&P rates IPC Acquisition new notes B-

Standard & Poor's assigned a B- rating to the new senior subordinated notes of IPC Acquisition Corp. It also assigned a B+ rating to the company's credit facility due 2006.

Moody's confirms CSK Auto

Moody's Investors Service confirmed the B2 rating recently assigned to CSK Auto Corp.'s new senior notes and its B3 rating on the company's existing subordinated notes. The outlook is stable.

The confirmation follows an increase in the size of the senior note issue to $280 million from $225 million and a reduction in the size of the secured bank facilities to $300 million from $325 million.

The changed debt structure provides a greater cash cushion as a result of funding more debt up front, while increasing interest payments by about $3.5 million per year, Moody's said. It also increases the potential amount of outstanding debt senior to the subordinated notes, weakening their prospects for recovery in case of a default.

Moody's upgrades MDC senior notes, confirms revolver

Moody's Investors Service upgraded MDC Holdings, Inc.'s $175 million of 8.375% senior notes due 2008 to Ba1 from Ba2 and confirmed its $450 million revolving credit facility due 2004 at Ba1. The outlook is stable.

Moody's commented that MDC's ratings are "strongly placed" in their rating category.

The upgrades reflect MDC's decision to attach the guarantees of its major homebuilding subsidiaries to the senior note issue, Moody's said. Previously, the senior notes did not carry subsidiary guarantees and thus were rated one notch below the senior implied rating.

Moody's downgrades eKabel Hessen senior unsecured notes

Moody's Investors Service downgraded eKabel Hessen GmbH's senior unsecured notes to Caa1 from B3 and affirmed the €850 million guaranteed senior secured credit facility of its Kabel Hessen GmbH & Co. KG unit at B1. The outlook for all ratings is negative.

Moody's said its downgrade reflects eKabel's "limited operating progress to-date and increased concerns regarding the company's longer-term ability to adequately service its debt obligations following the recently announced revisions to the company's business plan."

Because spending per home passed will be higher than anticipated, eKabel recently reduced the number of homes it plans to upgrade in the next several years in order to stay funded.

"While recognizing the strategic rationale and necessity of such spending reductions, Moody's notes that the required cutbacks may adversely impact the company's growth prospects and reflect the limited financial flexibility afforded to the company over the medium-term," the rating agency said.

Moody's puts YPF on review for downgrade

Moody's Investors Service put the Ba3 foreign currency bond rating of YPF SA on review for downgrade along with other ratings of Repsol YPF SA and its units.

Moody's said the action was prompted by the deteriorating financial situation in Argentina. It said "the severe economic weakness of Argentina in general" and the imposition of currency controls by the Argentine government in particular would "very likely have negative financial implications" for YPF and the other units. YPF is the most directly exposed because Repsol YPF does not guarantee its debt.

S&P downgrades Song Networks

Standard & Poor's downgraded Song Networks NV, lowering its notes to CCC from B- and putting the B- corporate credit watch on negative outlook.

Moody's upgrades William Hill

Moody's Investors Service upgraded William Hill Finance plc's ratings including lifting its £150 million issue of senior subordinated notes due 2008 to B1 from B3. The outlook is stable.

Moody's said the upgrade reflects William Hill's success in deleveraging over the past year.

Although third quarter EBITDA decreased slightly from the prior year period, William Hill has continued to pay down debt and maintain lower leverage on a debt to cash flow basis, Moody's said.

Debt/EBITDA for the 12 months to Sept. 25, 2001 was 2.7 times compared to 4.0 times for the year ending Dec. 25, 2000.

S&P puts Shiloh Industries on negative watch

Standard & Poor's put Shiloh Industries Inc. on Credit Watch with negative implications. Ratings affected include its $300 mil revolving credit facility due 2005 at BB-.

S&P puts Remington on negative watch

Standard & Poor's put Remington Products Co. LLC on CreditWatch with negative implications.

Affected ratings include the company's 11% senior subordinated notes due 2006 rated CCC+.

Moody's downgrades Consolidated Container

Moody's Investors Service downgraded Consolidated Container Co. LLC's ratings, including its $185 million of 10.125% senior subordinated notes due 2009 to Caa1from B2 and its $497 million secured credit facility to B2 from Ba3. The outlook is stable.

Moody's said the downgrade reflects the company's "impaired financial condition" resulting primarily from weak operating performance throughout fiscal 2001.

The reduction of margins and return on assets is "concerning particularly given the significant level of intangibles," Moody's said, noting that at $525 million or 52% of total assets intangibles exceeds total equity of $265 million at Sept. 30, 2001.

"Operating difficulties, which became manifest in the third quarter, include difficulties satisfying numerous and more demanding ramp up of new product manufacturing requirements, efficiency problems at certain packaging plants, and unusually high operating costs," the rating agency said.

It described cash flow and liquidity as "weak."

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