Japan's Nippon Sheet Glass 'BB+' rating on CreditWatch

Standard & Poor's said it has placed its 'BB+' long-term corporate credit and debt ratings for Nippon Sheet Glass Co on CreditWatch with negative implications, following the company's approach to acquire Pilkington PLC of the UK.

Yesterday, S&P placed its ratings for Pilkington on CreditWatch with negative implications.

'If Nippon Sheet Glass needs a high level of financing for a successful bid, depending on the financing vehicle, the rating on the company could be negatively affected,' S&P said.

Although Nippon Sheet Glass is the largest shareholder in Pilkington, with a 20 pct stake, so far no clear synergy between the two companies has been identified, the ratings agency said.

'Nippon Sheet Glass may require 300 bln yen for the acquisition, according to media reports. If this is the case, the company's financial profile will be affected negatively under certain financing schemes and its credit quality will likely deteriorate,' S&P said.

600450 Japan's Nippon Sheet Glass 'BB+' rating on CreditWatch glassonweb.com
Date: 2 November 2005
Source: Forbes.com

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