PBL - what's happening here??, page-2

re: PBL - what's happening - S&P downgrades to "ne http://www.sanford.com.au/sanford/Members/MarketInfo/News.asp?Source=RWE&ArticleID=168653

"PBL: S&P downgrades rating outlook to negative
15:42, Monday, 13 May 2002

Sydney - Monday - May 13: (RWE/AAP) - Standard & Poor's has downgraded its rating outlook for Publishing & Broadcasting Ltd from stable to negative.
The agency has maintained the media company's A-minus/A2 corporate credit ratings.
S&P said its action reflected the challenge PBL faced in restoring its credit protection ratios to those commensurate with its A-minus long-term senior rating.
"PBL's financial performance continues to suffer from an underperformance in its TV broadcasting division, the Nine Network," S&P director of corporate and infrastructure finance ratings Ms Jeanette
Ward said today.
"Consequently, with PBL's key financial ratios expected to be lacklustre in fiscal 2002, the company relies on a recovery in advertising demand and a strong improvement in its TV earnings in fiscal 2003 to restore its financial performance to more satisfactory levels."
Ms Ward said PBL's strong cashflow from its core media and casino businesses provided strength to the company's credit profile.
"As the advertising cycle recovers, and PBL focuses on improving its TV audience ratings and on greater cost controls, Standard & Poor's expects PBL to reduce its net debt usage and restore its credit ratios
to more satisfactory levels, especially given its cautious investment strategy, refocusing on core activities," she said.
PBL fell 9c to $8.98."

Disclaimer: I'm short.