CreditWatch Maintained on Tower Ltd. Group by S&P.Business Editors MELBOURNE, Australia--(BUSINESS WIRE)--May 21, 2003 Standard & Poor's--Standard & Poor's Ratings Services Ratings Service A company, such as Moody's or Standard & Poor's, that rates various debt and preferred stock issues for safety of payment of principal, interest, or dividends. said today that it is maintaining its CreditWatch with negative implications on various Australian and New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. subsidiaries of Tower Ltd. following the profit warning issued by the insurance group today. The ratings on various Tower Ltd. operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. in Australia and New Zealand are 'A-', while the ratings on various holding companies and debt issues are'BBB-/A-3'. "The maintenance of the CreditWatch follows the profit warning issued today, where the group intends to reduce the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of certain group companies by NZ$190 million, which will result in a loss for the half year in excess of NZ$180 million," said Michael Vine, credit analyst, Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. Ratings. The reduced carrying value of certain subsidiaries is the result of a change to the application of accounting standards. However, the group proposes to undertake a substantial capital raising of NZ$200 million, which will be used to retire debt. The CreditWatch placement will be resolved in the short term and after the release of the half-year results on May 28, 2003. Complete ratings information is available to subscribers of RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's Web site at www.standardandpoors.com; under Fixed Income in the left navigation bar A set of buttons or graphic images typically in a row or column used as a central point that link you to major topic sections on a Web site. If the navigation bar is a single graphic image with multiple selections, it is known as an imagemap. See imagemap. , select Credit Ratings Actions. Copyright 2003, Standard & Poor's Ratings Services |
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