Forum Archive Index - June 2000

["nick" <acummin@es.co.nz>]

BRIERLEY INVESTMENTS LABELS DOWNGRADE AS HISTORIC REFLECTION
Friday, 9 June 2000 - Improving Fundamentals Reflect Positive Results of
Active Investment Strategy
SINGAPORE - [8 June 2000] --- Brierley Investments Ltd (BIL) this afternoon
commented on an announcement earlier today by ratings agency Standard & Poor
's (S&P) regarding the revision of BIL's credit rating to BBB- (stable
outlook) from BBB and the re-confirmation of its A-3 short term rating. The
rationale issued by the agency listed the reason for the revision as being a
perceived reduction in liquidity arising from a smaller number of larger
investments.
Commenting on the revision, Greg Terry, Chief Executive Officer of BIL
noted: "S&P's decision reflects historical problems with the company rather
than its current direction and performance." He added, "At no time in the
last three years has BIL had better control over both its balance sheet and
its business strategy. We believe that the fundamentals of our business are
significantly stronger than when our BBB rating was re-affirmed by the
agency in October 1998, and are a tribute to the skill and hard work of the
management team, many of whom have only joined BIL in the last few months."
Mr Terry was referring to the strategy articulated when he joined the
company in November last year, which identified the first steps in
rebuilding what was once the second largest business enterprise in
Australasia. Since that time, BIL has worked aggressively and quickly to
address the historical problems faced by the company, optimise the
realisation of non-core assets and to create value around its core assets.
BIL has also begun investing in growth opportunities which leverage its
existing quality asset base and are aligned to 21st century growth
opportunities.
"The rating still confers investment grade status on BIL, and we have every
confidence that as our performance continues to improve, that an upward
revision will be appropriate" added Mr Terry.
BIL announced last month that it had reached an agreement with Singapore
Airlines (SIA) to sell a 16.7% stake in Air New Zealand for between NZ$285
million and NZ$380 million, subject to future performance criteria. Together
with other anticipated asset sales and available funding, BIL currently has
access to cash in excess of S$650 million.


----------------------------------------------------------------------------
http://www.sharechat.co.nz/          New Zealand's home for market investors
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/forum.shtml.