Credit Lyonnais Australia Rtgs on S&PWatch-Dev.MELBOURNE--(BUSINESS WIRE)--S&P's CreditWire 6/16/98--Standard & Poor's today placed its triple-'B'-plus/A-2' ratings of Credit Lyonnais Australia Ltd. (CLAL CLAL Center for Learning and Leadership (New York, NY) ) on CreditWatch with developing implications, following the announcement of the parent, Credit Lyonnais, of its intention to sell its Australian business. CLAL is a 100% owned and guaranteed subsidiary of Credit Lyonnais. The ratings could be raised, lowered, or affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. , when the details of the sale are finalized See finalization. . The placement on CreditWatch with developing implications reflects the uncertainty of CLAL's future credit standing relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the level of integration and support that would be afforded by the acquiring institution should the sale proceed. Although the timing of a decision on the sale is uncertain, the guarantees and support by Credit Lyonnais remain in place, covering all outstanding obligations until at least the date of sale. Credit Lyonnais has suggested that CLAL's operations are no longer strategically core to CreditLyonnais' global businesses. Given that CLAL is a profitable ongoing business, however, Credit Lyonnais has indicated that it may keep CLAL if there is no satisfactory offer. The proposed sale of CLAL is a result of the Brussels agreement, whereby a regional sell-off and streamlining of Credit Lyonnais' operations will allow it to claim further subsidies from the French government before its privatization privatization: see nationalization. privatization Transfer of government services or assets to the private sector. State-owned assets may be sold to private owners, or statutory restrictions on competition between privately and publicly owned . The sale of CLAL, which had A$1.5 billion in total assets at Dec. 31, 1997, is Credit Lyonnais' only significant divestment divestment to strip one's investment from an entity. in Asia, Standard & Poor's said.---CreditWire
CONTACT: Gavin Gunning, Melbourne (61) 3-9250-4533
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