S&P keeps BW Group on watch

Standard & Poor's said the BBB- long-term corporate credit rating and issue rating on BW Group Ltd. remain on CreditWatch with negative implications, pending fiscal 2007 financial results and more detailed inputs from the company.

Ratings were placed on CreditWatch on Feb. 4 after revisions in the Norwegian tax regime. S&P said it considers such tax liabilities to be priority obligations that have debt-like features and would take precedence over other unsecured obligations.

Although the company's operating performance for the nine months ended Sept. 30, 2007 was on track, deviation from expected credit metrics occurred due to the $400 million cash required for funding the APL acquisition, which was initially proposed as a cashless share-swap deal, the agency noted.

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