S&P puts Adelphia on negative watch

Standard & Poor's put Adelphia Communications Corp. on CreditWatch with negative implications.

Ratings affected include Adelphia's notes rated B+, its preferred stock rated B- and its convertible subordinated notes rated B and its unit's bank debt rated BB.

S&P takes Fleming off watch

Standard & Poor's removed Fleming Cos. Inc. from CreditWatch with negative implications and confirmed the company's ratings including its $250 million 10.5% senior subordinated notes due 2004, $250 million senior subordinated notes due 2007, $130 million 5.25% convertible senior subordinated notes due 2009 and $250 million senior subordinated notes due 2011, all rated B+, its $600 million revolving credit facility due 2003 and $250 million term loan due 2004 at BB+, and its $355 million 10.125% senior notes due 2008 rated BB-. The outlook is negative.

S&P put Fleming on watch on Jan. 22 because of uncertainty about the impact of Kmart Corp.'s bankruptcy filing but said it affirmed the ratings based on the expectation that Kmart's store closing program will only modestly affect Fleming. Other factors in the confirmation are Fleming's designation as a critical vendor by the bankruptcy court, giving it priority in payment over other vendors, the expectation that Fleming will continue its supply contract with Kmart and S&P's that Kmart will emerge from bankruptcy.

"Although the supply contract can be confirmed or denied in bankruptcy court, neither party is expected to cancel the contract, given the mutual dependency of the relationship, though some alteration is possible," S&P commented.

S&P takes Northwest off watch

Standard & Poor's removed Northwest Airlines Corp.'s bond ratings from CreditWatch with negative implications and confirmed them while it upgraded Northwest's bank debt but kept it on CreditWatch with negative implications. The outlook for the corporate credit is negative.

Affected debt includes Northwest's $300 million 9.875% senior unsecured notes due 2007, confirmed at B+, and its $150 million term bank loan due 2002 and $850 million revolving credit agreement due 2005, both raised to BB from B+.

S&P cuts Adelphia Business to D

Standard & Poor's downgraded Adelphia Business Solutions Inc. to D.

Ratings affected include Adelphia Business' $329 million senior discount notes due 2003 and $300 million 12% senior subordinated notes due 2007, both lowered to D from C.

S&P downgrades Fairfield

Standard & Poor's downgraded Fairfield Manufacturing Co., Inc. and kept it on CreditWatch with negative implications. Ratings affected include Fairfield's 11.25% cumulative exchangeable preferred stock series A, cut to CCC- from CCC, and its $100 million 9.625% senior subordinated notes due 2008, cut to CCC from CCC+.

S&P downgrades Standard Motor

Standard & Poor's downgraded Standard Motor Products Inc. and removed it from CreditWatch with negative implications. The outlook is stable.

Ratings affected include Standard Motor's $90 million 6.75% convertible subordinated notes due 2009, cut to B from B+. S&P withdrew its rating on the company's $110 million unsecured line of credit due 2002, previously rated BB.

Moody's puts TASA on downgrade review

Moody's Investors Service put its B2 long-term foreign currency debt ratings on Telefonica de Argentina SA (TASA) on review for possible downgrade affecting $800 million of debt.

Moody's said its action follows the new wave of restrictive measures imposed by the Argentinean government earlier this week, that severely restrict companies domiciled in Argentina from making interest payments in foreign currency.

Moody's added that its review will assess the increased uncertainty about TASA's ability to make future dollar-denominated payments under the new restrictive regulations, which preclude Argentinean companies from making any payments in foreign currency.

Moody's will also look at the possibility Telefonica SA might not provide TASA with US dollars for its future foreign currency payments. TASA's B2 foreign currency bond rating is five notches above Argentina's Ca long-term foreign currency ceiling for bonds and notes based on the perceived implicit support from Telefonica SA, which owns 98% of TASA and the strategic value of TASA, Moody's said.

S&P cuts Banco Hipotecario to D

Standard & Poor's downgraded Banco Hipotecario SA's €100 million 9% notes due 2002 and €100 million 8.75% medium-term notes due 2002 to D from CC.

S&P downgrades Exide

Standard & Poor's downgraded Exide Technologies and kept it on CreditWatch with negative implications.

Ratings affected include Exide's $150 million multicurrency term loan A due 2003, $250 million term loan B due 2005 and $250 million multicurrency revolving credit line due 2003, all cut to CC from CCC.

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