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ASM Brescia SpA On CreditWatch Negative And AEM SpA On CreditWatch Positive Re Merger Plans
Standard & Poors, June 2007
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
Abstract
MILAN (Standard & Poor's) June 5, 2007--Following news that Italian utility AEM SpA and neighboring utility ASM Brescia SpA have agreed to merge (with AEM absorbing ASM), Standard & Poor's Ratings Services said today that it has placed its 'A+' long-term and 'A-1' short term corporate credit ratings on ASM on CreditWatch with negative implications, and its 'BBB' long-term corporate credit rating on AEM on CreditWatch with positive implications. At the same time, the 'A-2' short-term corporate credit rating on AEM was affirmed. We believe the transaction will be positive for AEM but negative for ASM from both a business and financial perspective, given the two companies' relatively comparable scale and the difference in their credit standing (AEM's being weaker...
Companies mentioned in this report are: A2A SpA,ASM Brescia SpA
Action: Affirmed
Action: On CreditWatch:Negative
Action: On CreditWatch:Positive
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