TORONTO Standard & Poors placed its triple-B-corporate credit rating on Canadian Pacific Ships Holdings, and its triple-B-minus corporate credit and senior unsecured debt ratings on Legacy Hotels Real Estate Investment Trust on CreditWatch with negative implications.
The CreditWatch placements follow Canadian Pacific Ltd.s intention to split into five separate companies, leaving CP Hotels as the company s sole remaining holding. It was Canadian Pacifics involvement that had allowed CP Ships to have greater access to capital and potential liquidity than most of its competitors.
Likewise, Legacy had benefited from the operational expertise and network affiliations of CP Hotels, which is currently not rated by Standard & Poors and its stand-alone rating is undetermined. However, a financially weak CP Hotels could negatively impact Legacy, Standard & Poors said. (2/14/01)
SOURCE: CreditWire