London Merchant Securities 'BBB/A-2' Ratings On Watch Negative Following Merger Announcement Nov 06

Standard & Poors, November 2006

Abstract
STOCKHOLM (Standard & Poor's) Nov. 14, 2006--Standard & Poor's Ratings Services said today it placed its 'BBB/A-2' corporate credit ratings and 'A-' senior secured debt rating on U.K.-based property investment company London Merchant Securities PLC (LMS) on CreditWatch with negative implications. At the same time, the recovery rating of '1' was affirmed. The CreditWatch placement follows the company's announcement of a proposed merger with Derwent Valley Holdings PLC (not rated). "Although a merger of the two central London office property specialists would strengthen the business profile of the joint group, Standard & Poor's needs to assess how the transaction would affect the combined entity's financial risk profile," said Standard & Poor's credit analyst Andreas Kindahl. The transaction includes a cash...

Companies mentioned in this report are: Derwent London PLC
Action: Affirmed
Action: On CreditWatch:Negative

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.

Derwent London PLC

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