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ALE Notes Placed on WatchNeg After Coles Myer/Macquarie Bid for ALH Oct 04
Standard & Poors, October 2004
MELBOURNE (Standard & Poor's) Oct. 14, 2004--Standard & Poor's Ratings Services today placed its 'BBB' issue rating on Australian Leisure and Entertainment Property Trust's (APT) A$150 million of cumulative loan notes (also known as ALE Notes) on CreditWatch with negative implications. The CreditWatch follows Coles Myer Ltd. (BBB/Stable/A-2) and Macquarie Bank Ltd.'s (A/Stable/A-1) joint bid for Australian Leisure and Hospitality Ltd (ALH), and reflects a heightening of default risk on the notes due to the expected increase in financial leverage at ALH. "Standard & Poor's expects that if the Coles Myer/Macquarie bid is successful, then the rating on the ALE notes is likely to fall below investment grade, reflecting this higher risk of default," said Paul Draffin, credit analyst in...
Companies mentioned in this report are: Australian Leisure & Entertainment Property Trust,Coles Group Ltd.,Macquarie Bank Ltd.,Foster's Group Ltd.,Woolworths Ltd.
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.
Australian Leisure & Entertainment Property Trust,Coles Group Ltd.,Macquarie Bank Ltd.,Foster's Group Ltd.,Woolworths Ltd.