S&P: Dynea on developing watch

Standard & Poor's said it put its B long-term corporate rating on Dynea International Oy on CreditWatch with developing implications, following Dynea's announcement of the sale of its U.S. unit.

The CreditWatch developing status means that the rating could be raised, lowered or affirmed, the agency said, noting that the outcome will depend on the amount of the sale proceeds, their use and the business profile of the remaining assets.

The rating could be favorably affected if the proceeds are sufficient and used to redeem all or a great part of financial debt, the group obtains sufficient new financing for its remaining operations and the group's leverage policy is in line with the new business profile, according to S&P.

On the other hand, the rating could be negatively affected if the business profile of the remaining operations is far weaker than at present and leverage does not decrease sufficiently to compensate and/or if the agency expects the leverage to increase to fund potential future acquisitions.

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