Waterford Wedgwood: S&P withdraws ratings

Standard & Poor“s (S&P) has withdrawn its D long-term corporate credit rating on Irish crystal and porcelain products manufacturer Waterford Wedgwood Plc.
The agency also withdrew the D issue rating…

Standard & Poor“s (S&P) has withdrawn its D long-term corporate credit rating on Irish crystal and porcelain products manufacturer Waterford Wedgwood Plc. The agency also withdrew the D issue rating on the company“s EUR 166 million (USD 207.5 million) subordinated mezzanine notes due 2010 and their recovery rating of 6. The action followed the planned sale of major operating assets of Waterford Wedgwood to the New York-based restructuring and turnaround specialist KPS Capital Partners. As a result of these significant changes in the group“s ownership structure, S&P has been unable to receive a consistent flow of information, which would allow the agency to either maintain or change its ratings. On 5 January 2009, the agency cut its long-term corporate credit rating on the group to D from SD, upon disclosure of the appointment of Deloitte LLP partners as receivers and administrators to Waterford Wedgwood and a number of its operating units. The rating on the EUR 166 million subordinated mezzanine notes, due 2010, had already been cut to D on 1 December 2008, on the missed coupon payment on the notes. The recovery rating on the subordinated notes was 6, indicating negligible expectation (0%-10%) of recovery.