S&P puts Central Parking on watch

Standard & Poor's said it placed its ratings on Central Parking Corp., including the B+ corporate credit rating, on CreditWatch with negative implications.

The CreditWatch listing follows Central Parking's recent announcement that it has engaged The Blackstone Group LP to assist management and the board of directors in pursuing various strategic alternatives, including a partial or complete sale of the company, or a possible merger, the agency said.

S&P added that the company does not plan to release any additional information about the status of this review until a definitive agreement is entered into or the strategic review process is completed.

"Although the ultimate outcome of this process is uncertain, these strategic alternatives could potentially weaken credit protection measures to levels below those appropriate for the current rating," noted S&P credit analyst Mark Salierno.

"In the event that a sale to a financially stronger company is announced, we would consider revising the CreditWatch listing. We will monitor developments associated with a potential sale of the company in order to assess the rating implications."

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