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ABB Delivers on Near-Term Targets; Further Restructuring and Deleveraging Measures Required Mar 03
Standard & Poors, March 2003
Abstract
The news from Switzerland-based engineering group ABB Ltd. (BB+/Negative/B) over the past few weeks has been very encouraging. The group's fourth-quarter performance has been in line with Standard & Poor's expectations and, no less importantly, the group reports good progress in its legal proceedings to bring under control asbestos litigation it is facing in the U.S. Nevertheless, ABB's capitalization has weakened further as a result of asbestos-related provisions and other losses from discontinued operations in the fourth quarter of the fiscal year ended Dec. 31, 2002. In addition, the group's financial leverage is still excessive despite recent divestments, and further near-term disposals are required. At a time of economic uncertainty, execution of this deleveraging process and implementation of ABB's restructuring...
Companies mentioned in this report are: General Electric Co.,Sirius International Insurance Corp.,ABB Ltd.
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: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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