Northern Rock 'A-' unchanged on equity injection from Virgin-led consortium -S&P |
|
|
|
Published
:
Mon, 15 Oct 2007 15:23
|
MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said its 'A-' ratings on Northern Rock PLC are unaffected by the proposed equity injection from a consortium led by Virgin Group.The rating agency said under the nonbinding proposal, the consortium would obtain a material stake in Northern Rock--30 pct or more--but does not intend to bid for all of the share capital. S&P added the consortium plans to retain Northern Rock in its entirety, rename and rebrand it as Virgin Money, and seek to restore growth.The consortium will inject cash into Northern Rock in exchange for new equity to be issued at a discount, and Virgin Group would transfer its Virgin Money retail financial services business to Northern Rock in exchange for further new equity.S&P also said the injection of additional equity would be a positive factor, but may not be sufficient to maintain the current ratings once the UK authorities' liquidity facility and/or guarantee are withdrawn.The ratings firm added the proposal does not immediately affect the ratings on Northern Rock since competing offers may emerge from the other parties with whom the bank is currently in discussions.TFN.newsdesk@thomson.compvi/ranCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
|
|
|
|
|
|
|
| Stock
Quotes * |
|
NASDAQ
|
|
2792.28 |
22.57 (
0.81 %)
|
| SYMBOL (
2012-01-19 ) |
| LAST |
CHANGE
|
|
CARNIVAL
(
11:35am )
|
|
2017.00 |
46.00 (
2.42 %)
|
|
WHITBREAD
(
11:35am )
|
|
1662.99 |
33.99 (
2.09 %)
|
| SYMBOL (
2012-01-19 )
|
| LAST |
CHANGE
|
|
IBM
(
12:34pm ) |
|
181.50 |
0.43 (
0.24 %)
|
| SYMBOL (
2012-01-19 )
|
| LAST |
CHANGE
|
|
|
Print this Story
Euroshares fall on Wall Street retreat, weak construction sector UPDATE 