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BULLETIN: Corning Inc. to Sell Significant Share of Photonics Technologies Business May 03
Standard & Poors, May 2003
Abstract
NEW YORK (Standard & Poor's) May 13, 2003--Standard & Poor's Ratings Services said today that the announcement by Corning Inc. (BB+/Negative/B) that it has agreed to sell a significant portion of its photonic technologies business to unrated Avanex Corp. in exchange for common stock valued at approximately $25 million is a mild positive because of the poor performance of the business, including negative cash flow, but has no immediate effect on the credit rating or outlook on Corning. At the same time, Corning reiterated its goal of returning to profitability in 2003. The transaction will result in a pretax charge of approximately $50 million-$70 million in the second quarter. The cash impact, including restructuring charges and a $20 million contribution...
Companies mentioned in this report are: Corning Inc.,Alcatel-Lucent
Action: S&P Event
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.
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