S&P affirms Industriali Riunite, gives bonds 3

Standard & Poor's said it affirmed its BB+/B long- and short-term corporate credit ratings on CIR-Compagnie Industriali Riunite SpA and removed them from Creditwatch with negative implications, where they had been placed on Aug. 1.

The outlook is negative.

At the same time, S&P said it assigned its 3 recovery ratings to CIR's unsecured outstanding bonds and affirmed its BB+ issue ratings on this debt, adding that the ratings affirmation follows the recently announced decision by CIR to cancel its demerger project.

S&P said that the ratings on CIR reflect its heavy value concentration of its investment portfolio on its 54%-owned power utility Sorgenia, which it views as weak from a credit standpoint, given execution risks and aggressive debt leverage and investments.

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