Pacific Atlantic Holdings Inc News

Standard & Poor's yesterday lowered its long-term corporate credit ratings on Pacific & Atlantic Holdings Inc. to double-'C' from triple-'C'-plus. The downgrades reportedly reflect Pacific & Atlantic's worsening financial profile, as it continues to suffer from very poor market conditions in the dry bulk shipping and container markets.

Standard & Poor's lowered its corporate credit ratings on Pacific & Atlantic Holdings Inc. to 'SD' (selective default) from double-'C'. At the same time, the ratings on the company's 11.5% $128 million first preferred mortgage notes, due 2008, were lowered to 'D' (default) from double-'C'. All ratings are removed from CreditWatch, where they were placed on March 2, 1999, with negative implications. The rating actions took place at the end of an extended grace period for the payment of the half-yearly interest installment on Pacific & Atlantic's first preferred mortgage notes. The company did not make the coupon payment due on Nov. 30, 1999.