Ratings agency Standard and Poor's has affirmed the 'BBB'...

Ratings agency Standard and Poor's has affirmed the 'BBB' long-term credit rating of grains handler AWB Ltd and the company's related debt issues.

The affirmation follows AWB's recent $459 million capital raising and the company's commitment to keep enough liquidity to meet its short-term obligations.

S&P also affirmed the 'A' long-term and 'A-1' short-term ratings on AWB Harvest Finance Ltd, AWB's financing arm.

The ratings were all removed from S&P's CreditWatch with negative implications, and given a negative outlook.

"The recent equity raising has significantly improved AWB's near-term debt-maturity profile and reduced its financial leverage," Standard & Poor's credit analyst Craig Parker said.

"In addition, the equity raising has provided the group with leeway to complete its targeted asset sales and explore other investment opportunities."

S&P said the ratings on AWB could be lowered if the future business profile of AWB introduces risks that are inconsistent with the 'BBB' rating.

"We believe that AWB's plans to pursue organic growth in its existing businesses, and the company's potential participation in industry consolidation, raises considerable uncertainty for AWB's credit quality," the company said in a statement.

"At the same time, significant execution risk surrounds AWB's plans to exit its Landmark Financial Services business and introduce a partner to its Australian Commodity Management business."

S&P said the rating was most likely to come under pressure if the credit quality of AWB deteriorates.

http://www.businessspectator.com.au/bs.nsf/Article/SP-affirms-AWBs-BBB-rating-pd20091126-Y67GL?OpenDocument