S&P Cuts C&W

Communications Today, Nov 15, 2002

Standard & Poor's Ratings Services Thursday reduced its long-term corporate credit rating on global telecom giant Cable & Wireless PLC [CWP] to "BBB " from "A," citing the erosion of the company's "net cash position" and "continued adverse industry fundamentals" at loss-making Internet unit C&W Global. S&P also lowered its short-term corporate credit rating for the company to "A-2" from "A-1," and placed all company ratings on credit watch with negative implications.

Earlier this week, C&W posted revenues for the first half of its fiscal year at 2.36 billion pounds ($3.75 billion), a 29 percent drop compared to the 3.31 billion pounds ($5.26 billion) for the April-September period a year ago. The company plans to cut 3,500 jobs at C&W Global and take a 4.32 billion pound ($6.87 billion) write-down in exceptional items and impairment charges as it slashes back operations in the United States.

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