Cadbury Schweppes on rating watch negative following news of spilt - Fitch |
|
|
Published
:
Fri, 16 Mar 2007 07:50
|
LONDON (AFX) - Fitch Ratings said it has placed Cadbury Schweppes PLC's issuer default and senior unsecured rating of 'BBB' and short-term rating of 'F2' on rating watch negative.The announcement comes a day after the food and beverages company said it plans to split its US beverages business from its global confectionery activities.The rating agency said the separation of the two businesses is likely to reduce the power achieved by the company.The separation may be followed by different financial policies for the two units, Fitch said.The prospective ratings on the company depend on the allocation of debt to the separated operations among others, it added.Compared with the current group's leverage, the cash generative nature of the beverages activities lends itself to higher leverage for the same 'BBB' rating, whereas the confectionery business would benefit from lower leverage, Fitch said.newsdesk@afxnews.comnpr/ash/fajCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
|
|
|
|
Print this Story
Fitch affirms TransDigm rating 