Printer Friendly

DUFF & PHELPS REAFFIRMS GRAND MET RATINGS

 CHICAGO, Sept. 29 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has reaffirmed its ratings of Grand Metropolitan Finance PLC and Grand Metropolitan Investment Corp. (NYSE: GRM) in light of the just announced re-structuring provision of $175 million. The company expects to save $80 million annually after two years.
 The units absorbing the vast majority of the changes are the North American food business ($65 million), particularly Green Giant, and Pearle Vision ($60 million). Both units were part of the Pillsbury acquisition. Green Giant will close three Canadian plants and one in the U.S. and cease production at another U.S. facility. Also, 600 workers will be let go (overall, Grand Met plans to eliminate 3,000 workers). Pearle Vision will close unprofitable stores and write-off inventory.
 We view these moves as positive, since Grand Met management is now actively addressing on the two operations that have been most troublesome since the Pillsbury acquisition. Most importantly, and critical to our ratings, IDV remains a strong and increasing generator of cash and seemingly not touched by the restructuring.
 Grand Metropolitan Investment Corp.'s notes and debentures are rated 'A' (single A); its commercial paper is Duff-1. Grand Metropolitan Finance PLC's commercial paper is also Duff-1.
 -0- 9/29/93
 /CONTACT: W. Dudley Heer, CFA of Duff & Phelps Credit Rating Co., 312-368-3123/
 (GRM)


CO: Grand Metropolitan Investment Corporation ST: Illinois IN: FOD SU: RTG

TM -- NY075 -- 6970 09/29/93 16:34 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 29, 1993
Words:240
Previous Article:MADERAS Y SINTETICOS S.A. - MASISA -ANNOUNCES CHANGES IN BOARD OF DIRECTORS
Next Article:GE CAPITAL MORTGAGE SERVICES, INC. SERIES 1993-10 RATED BY FITCH -- FITCH FINANCIAL WIRE --
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters