S&P: Standard Commercial, Dimon on watch

Standard & Poor's said it placed its BB+ corporate credit and other ratings on Standard Commercial Corp. and related entities on CreditWatch negative. At the same time, the BB corporate credit rating and other ratings on Dimon Inc. remain on CreditWatch negative, where they were placed on May 25 for performance below S&P's expectations.

On watch are Standard commercial's BB+ corporate credit and senior unsecured debt ratings, Standard Commercial Tobacco Co. Inc.'s, Standard Commercial Tobacco Co. (UK) Ltd.'s and Trans-Continental Leaf Tobacco Co. Ltd.'s BB+ senior unsecured debt rating and Dimon Inc.'s BB corporate credit and senior unsecured debt ratings.

S&P said the rating action follows Dimon and Standard Commercial's announcement that the two companies have signed a definite merger agreement.

Although the transaction should provide the new merged entity with opportunities for significant cost savings and operating efficiencies, S&P said the company will be highly leveraged.

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