Moody's puts Regional Independent on upgrade review

Moody's Investors Service put Regional Independent Media Group plc's ratings on review for possible upgrade including its $110 million senior notes due 2008 and £93.5 million senior discount notes due 2008, rating B3.

Moody's said its action follows the announcement that Johnston Press plc has agreed to acquire the company's ultimate parent Regional Independent Media Holdings Ltd.

Although Johnston Press is currently not rated, Moody's said it believes the company, which has a portfolio of almost 200 local and regional titles across the UK, may be of superior credit quality compared to Regional Independent Media.

As part of the acquisition, Regional Independent Media said it will commence an offer to purchase all the outstanding senior notes due 2008 and the senior discount notes due 2008.

S&P withdraws Linc.net ratings

Standard & Poor's withdrew its ratings on Linc.net Inc. saying there is insufficient information from the company to maintain the rating.

S&P said it had previously put the company's corporate credit and bank loan ratings on CreditWatch with negative implications because of limited financial flexibility, weak operating performance and the expectation that the telecommunications infrastructure service market will remain depressed for the next several quarters.

Although Linc.net obtained an additional $10 million in capital from its equity sponsor and an additional $8.5 million revolving credit facility in the third quarter of 2001, delays in collecting receivables left the company with $8 million in cash and availability under its secured bank credit facilities and $13 million in debt amortization in the next 12 months, S&P said.

S&P assigns BB+ to King Pharmaceuticals revolver

Standard and Poor's affirmed King Pharmaceuticals Inc.'s corporate credit, senior secured and senior unsecured debt ratings and assigned a rating of BB+ with a stable outlook to an anticipated $400 million senior secured revolving credit facility due in 2007.

According to the S&P release, the rating is based on the continued success of Altace, a cardiovascular drug, "as well as on the company's increasing sales diversity, growing financial flexibility, and improved financial profile, offset by the risks inherent in a growth-by-acquisition business strategy."

The revolver is secured by a first priority pledge of 100% of the stock of all subsidiaries and by a perfected first priority security interest in substantially all assets of the company and its subsidiaries.

Moody's rates new Resorts International notes B2

Moody's Investors Service assigned a B2 rating to Resorts International Hotel and Casino, Inc.'s upcoming offering of $175 million first mortgage notes due 2009. The outlook is stable.

Moody's said its rating incorporates the large size and scope of Resort's planned expansion project and the accompanying increase in leverage.

The expansion will almost double the size of Resorts International in terms of assets, available hotel rooms and debt, the rating agency noted. Debt/EBITDA is expected to peak at about 6.5 times during the construction period.

Moody's also commented that Resorts International is one of the smaller casino properties in Atlantic City and has little, if any, control over the Atlantic City gaming market in terms of pricing and promotion, making it highly susceptible to changes in the market strategy of larger casinos.

"While Resorts has experienced some degree of success attracting higher margin customers, it will continue to compete for the same customers that other Atlantic City casinos are aggressively pursuing," Moody's said.

Positives include the cash flow improvement since Resorts International was acquired by Colony Investors in April 2001, including an almost 30% increase in EBITDA in fiscal 2001, Moody's said.

S&P downgrades Wolverine Tube

Standard & Poor's downgraded Wolverine Tube Inc. and kept the company on CreditWatch with negative implications.

Ratings lowered include Wolverine's $200 million revolving credit facility due 2002 and $150 million 7.375% senior notes due 2008, both cut to BB- from BB+.

S&P downgrades Navistar

Standard & Poor's downgraded Navistar International Corp. Ratings lowered include Navistar's $100 million 7% senior notes due 2003 and $400 million 9.375% senior notes due 2006, both lowered to BB+ from BBB-, its $250 million 8% senior sub notes due 2008, lowered to BB- from BB+ and Navistar Financial Corp.'s $100 million 9% senior subordinated notes due 2002, lowered to BB- from BB+.

S&P said it lowered Navistar's ratings because of an increase in financial leverage and a significant diminution in financial flexibility resulting from persistent soft demand in the North American heavy- and medium-duty truck markets. The outlook is negative.

S&P said it expects end markets may have bottomed but said the timing and magnitude of a recovery is uncertain.

"As a result, a material reduction in debt is unlikely during the next few years," the rating agency said.

Although demand for new trucks has recently shown some signs of improvement, S&P noted, it added that the gain may be temporary as truck operators place orders to pre-buy trucks ahead of new engine emission standards which go into effect in October.

S&P puts Agrilink on positive watch

Standard & Poor's put Agrilink Foods Inc. on CreditWatch with positive implications.

Ratings affected include Agrilink's $100 million term A loan due 2003, $175 million term B loan due 2004, $180 million term C loan due 2005 and $200 million revolving credit facility due 2003, all rated B+, and its $200 million 11.875% senior subordinated notes due 2008, rated B-.

S&P puts Williams Scotsman on positive watch

Standard & Poor's put Williams Scotsman Inc. on CreditWatch with positive implications.

Ratings affected include Williams Scotsman's $400 million 9.875% senior notes due 2007 and $150 million 9.875% senior unsecured notes due 2007, both rated B-. It also assigned a BB- rating to the company's $500 million revolving credit facility due 2006 and its $200 million term loan due 2006.

S&P puts United Artists on positive watch

Standard & Poor's put United Artists Theatres Co. on CreditWatch with positive implications.

Ratings affected include United Artists'$252 million restructured term credit agreement due 2005 rated B-.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.