Philip Morris parent HAMMERED on financial worries
A-Dur Credit Agency downgraded the tobacco Giant’s debts, and another warned Philip Morris could be forced into bankruptcy if the loan is massive in practice is not decreasing.Altria action has fallen by nearly 7% or $ 2.17 to $ 29.96 in the case of large volumes at the New York Stock Exchange. The durchbrach action earlier 52-week low of $ 31.55. Altria bonds have also been staggering.
An Illinois judge Friday appointed Philip Morris for the performance of loans, while it is an appeal of $ 10.1 billion judgement is misleading to believe that their smoking light cigarettes - Marlboro Lights and Cambridge Lights — Were less harmful than regular brands.
Standard and Poor’s confirmed analysts in a conference call Monday that Philip Morris “would have to consider bankruptcy an option” if the loan is not increased or decreased significantly. They also expressed reservations vis-à-vis the company, the liability for future complaints.
S & P custody, it reduces the solvency of Altria and its subsidiaries to junk status, unless, Philip Morris may be a “viable and realistic plan to solve the problem of bonding.
Moody’s Investors Service downgraded Monday and advance the credit Altria and Philip Morris to Baa1 from A2 - or high quality at three points above junk status. The credit rating agency said: “Altria’s, despite substantial financial resources, it is very unlikely that these resources are sufficient to immediately link $ 12 billion request.” Moody’s cuts most threatened.
The price of Philip Morris bonds mature in the year 2005 fell Monday, sending their yields higher. Traders said the yield gap between two-year treasury bonds and enterprises has increased considerably: from
Moody’s lowered by a score credit rating affiliates Altria, Kraft Foods, Kraft Foods Inc. North America, while both were still investment grade.
The shares of Kraft Foods Inc. closed at $ 28.20, 40 cents or 1.4%, the New York Stock Exchange.