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S&P Places Ratings for Coach USA on Watch Dev

11 June 1999

S&P Places Ratings for Coach USA on Watch Dev

    NEW YORK--June 10, 1999--Standard & Poor's today placed its double-'B' corporate credit rating and its single-'B'-plus rating on $150 million subordinated notes for Coach USA Inc. on CreditWatch with developing implications. Developing implications indicates that ratings may be raised, lowered or affirmed.
    The rating action follows the company's June 9, 1999 announcement that it is holding discussions with an unidentified party regarding a possible business combination. Coach USA is the largest provider of motorcoach bus tours and charters, airport shuttle, and taxi services in the U.S. It is also one of the largest private sector providers of motorcoach commuter and transit services in the U.S. Coach USA's ratings could be raised if the combined entity's credit profile (including the impact of acquisition financing) is stronger than that of Coach USA's. Alternatively, Coach USA's ratings could be lowered if the combined entity's credit profile is weaker than that of Coach USA's, Standard & Poor's said. -- CreditWire