Interpool debt ratings under scrutiny |
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Thu, 18 Jan 2007 07:25
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NEW YORK (AFX) - The three major credit services placed the debt ratings of Interpool Inc., which leases shipping containers and other transportation equipment, under review after a buyout offer Tuesday by the company's management.The agencies -- Moody's Investor Service, Fitch Ratings and Standard & Poor's -- all said that the offer could result in the Princeton, N.J.-based company taking on greater debt.Fitch and S&P said debt financing of $1.8 billion has already been committed for the proposed acquisition, which could weaken the company's financial position.Moody's said that an increase in Interpool's debt-to-equity ratio beyond 3.5 would 'put pressure' on its debt rating. Moody's added that based on publicly available information, 'it appears the company would operate ... beyond that threshold.'S&P said it is placing its 'BB' corporate credit rating for Interpool on CreditWatch with negative implications. Fitch said it is placing several ratings, including its 'BB+' on Interpool's senior unsecured debt, on Ratings Watch Negative. Moody's said it has placed its Corporate Family rating of 'B1' on review for a possible downgrade.Interpool's shares dropped 2 cents to $24.21 in afternoon trading on the New York Stock Exchange.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Interpool gets 259 mln usd MBO approach 