S/P WITHDRAWS RATINGS ON CAESARS WORLD <CAW>
Standard and Poor's Corp said it
withdrew the ratings on Caesars World Inc and unit Caesars
World Finance Corp.
    The action affects 230.8 mln dlrs of debt.
    Withdrawn were Caesars World's BB senior debt and B-plus
subordinated debt and the unit's B-plus subordinated debt.
    S and P said these issues are expected to be refinanced
when Caesars World implements a recapitalization plan. The
agency assigned a B-plus rating to Caesars World's proposed 330
mln dlr issue of seven-year senior notes and a B-minus grade to
its 330 mln dlrs of subordinated debentures due 1999.
    Standard and Poor's noted that the recapitalization plan of
Caesars World calls for the payment of a 26.25 dlr per share
dividend totaling 929.3 mln dlrs.
    The recapitalization plan will be financed by the
seven-year note and 12-year debenture issues, 300 mln dlrs in
bank and other debt, and by cash on hand, S and P noted.
    The agency said that Caesars World's debt will rise to 1.1
billion dlrs from about 319.2 mln on April 30 and the firm will
have stockholders' deficit of 508.8 mln dlrs. S and P said it
does not expect a meaningful reduction of debt for the next
several years.
 Reuter
