s&p keeps centro np ratings on watch ...

Source: www.in.reuters.com

S&P keeps Centro NP rtgs on watch developing, pending refinance
Mon Dec 22, 2008 11:20am IST
(The following statement was released by rating agency)

Dec 22 -- Standard & Poor's Ratings Services today said that it had maintained its 'CCC+' credit ratings on Centro NP LLC and Centro NP's senior unsecured debt; the ratings also remain on CreditWatch with developing implications, where they were initially placed on Jan. 3, 2008.

Centro Properties Group (CNP; not rated) recently announced that its Australian and U.S. lenders had extended the deadline for the refinancing of the group's debt facilities to Jan. 15, 2009, to allow for the completion of documentation for the refinancing of the group.

Under CNP's recapitalization plan, Australian lenders to CNP will convert A$1.05 billion of CNP debt into a senior convertible bond maturing in seven years. The remaining A$4.0 billion will be converted into term loans maturing on Dec. 15, 2011.

In conjunction with the issuance of new CNP equity, the Australian lenders will own about 90% of CNP's equity, assuming conversion of the convertible bond. Distributions to ordinary equity will continue to be suspended until at least Dec. 15, 2011.

"With the refinancing plan proposed and the support of the Australian and U.S. lenders, liquidity at CNP and Centro NP has improved from its previous extremely weak position," Standard & Poor's credit analyst Craig Parker said.

"The ratings on Centro NP could be raised if Centro NP is able to complete this refinancing proposal, and if we believe that the company has a sustainable capital structure. Centro NP would also need to manage its assets to retain its market value and mitigate the adverse cash-flow effect of the increased interest margins on Centro NP's debt facilities (that have been in effect since mid-December 2007). The ratings could be lowered if the refinancing package is not able to be achieved by Jan. 15, 2009."


Ends.

Cheers, Pie :)