Credit News

THE HOLT GROUP INC.’S corporate credit rating was affirmed at a double -’B'-minus and a single-’B'-plus senior unsecured debt rating by Standard and Poor’s. The ratings were removed from CreditWatch, where they were placed June 24, 1998. The outlook is now negative. The rating follows the announcement that Holt is no longer in active discussions to purchase Gothenburg, Sweden-based Atlantic Container Line. No offer by Holt had been made. Holt owns about 17% of Atlantic Container Line, plus options to acquire an additional 12% of the company. This transaction was expected to cost at least $130 million and most likely be debt financed. Atlantic Container Line is a medium sized operator of car carriers, RoRo (roll-on/roll-off) and container vessels on the North Atlantic trades which has reported solid performance. For the second quarter of 1998, Atlantic Container Line’s operating income increased slightly to Swedish krona (SKr) 213 million from SKr 208 million and nonoperating lease-adjusted debt to capital is under 40%. However, Atlantic Container Line remains exposed to fluctuations of rates on the North Atlantic trades.

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