Aetna Industries 'B-', 'B' Rtgs Placed on S&PWatch,Dev.NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 4/16/98-- Standard & Poor's today placed its single-`B' corporate credit rating and single-`B'-minus senior unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. rating on Aetna Aetna, volcano: see Etna, Italy. Industries Inc. on CreditWatch with "developing" implications, meaning ratings could be raised, lowered, or remain the same. The CreditWatch placement follows the recent announcement that MS Acquisition Corp. (which owns 100% of Aetna Industries and guarantees Aetna Industries' debt on a senior unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. basis) has purchased all of the outstanding capital stock of Societe Financiere de Developpement Industriel et Technologique (Sofedit), a private French company. The consideration paid to the stockholders of Sofedit consisted of promissory notes promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. in the aggregate principal amount of approximately $41 million, preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. in the aggregate stated amount of $27 million, and three million shares of common stock of MS Acquisition Corp. In addition, MS Acquisition Corp. assumed about $12 million of debt of the Sofedit group. Sofedit manufactures welded products and assemblies for the original equipment automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. . Aetna Industries produces stampings, modules, and assemblies, also for the automotive original equipment industry. Aetna Industries' profit and cash flow protection measures have been under pressure over the past few quarters due to lower-than-expected profit on some factory assist work and increased tooling costs related to new business. This prompted a change in Aetna Industries' rating outlook to negative from stable in March 1998. Standard & Poor's will meet with management to discuss the relationship among Sofedit, MS Acquisition corp. and Aetna Industries following the merger as well as the business and financial strategies and financial prospects for the combined company. -- CreditWire CONTACT: Lisa Jenkins, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of (1) 212-208-1598 For more information on criteria or subscriptions: http://www.ratings.standardpoor.com |
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