S&P may up Walter

Standard & Poor's said it placed the B+ corporate credit rating on Walter Industries Inc. on CreditWatch with positive implications.

The watch follows the company's announcement that it began a 2.8 million common shares follow-on offering.

Proceeds of about $250 million would be used to reduce outstanding borrowing on its senior secured credit facility. Pro forma adjusted debt-to-EBITDA ratio would be about 2.5 times.

The agency said it expects Walter's credit measures to strengthen further in 2008 because of improving operating performance stemming from substantially higher coal prices.

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