S&P Places Ratings on BFGoodrich on CreditWatch Neg
24 February 2000
S&P Places Ratings on BFGoodrich on CreditWatch Neg
Business Editors
NEW YORK--Feb. 22, 2000--Standard &
Poor's--Standard & Poor's today placed its ratings on BFGoodrich Co.
and related entities on CreditWatch with negative implications (see
list below) following the company's announcement that it will
repurchase up to $300 million of its common stock.
The stock buyback will be financed largely with short-term
borrowings and will therefore weaken already subpar credit protection
measures (1999 funds from operations to debt and debt to capital were
in the mid-30s and the 50% to 55% range, respectively, excluding
special charges.) As part of efforts to increase shareholder value,
the firm continues to explore the evaluation of various financial and
strategic alternatives related to its business portfolio.
BFGoodrich's current ratings are based on its leading positions
in selected aerospace (65% of 1999 sales), performance materials
(mainly specialty chemicals, 22%), and industrial (13%) markets. The
ratings also incorporate an expectation that BFGoodrich will pursue a
moderate financial policy and strengthen its credit profile.
Standard & Poor's will meet with management to assess the credit
implications of financing needs, operating strategy, and long-term
financial philosophy.---CreditWire
RATINGS PLACED ON CREDITWATCH WITH NEGATIVE IMPLICATIONS
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Rating
BFGoodrich Co.
Corporate credit rating A-
Senior unsecured debt A-
BFGoodrich Capital
Preferred stock BBB
(gtd by BFGoodrich Co.)
Coltec Industries Inc.
Senior unsecured debt A-
Senior secured debt A-
Coltec Capital Trust
Preferred stock BBB
(gtd by BFGoodrich Co.)
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