W.R. GRACE <GRA> DEBT AFFIRMED BY S/P
Standard and Poor's Corp said it
affirmed the ratings on W.R. Grace and Co's 575 mln dlrs of
debt following its fourth-quarter 1986 loss of 560 mln dlrs.
    Affirmed were the company's BBB-minus senior debt, BB-plus
subordinated debt and A-3 commercial paper.
    S and P pointed out that the fourth-quarter loss resulted
from the write-off of nearly 600 mln dlrs in assets, especially
in agricultural chemicals and natural resources.
    Because that write-off had no effect on Grace's cash, S and
P affirmed the current ratings, noting that Grace intends to
sell its agricultural business.
    Proceeds from the sale of the agricultural segment could be
used to reduce Grace's debt, Standard and Poor's said.
    However, S and P said it is less clear whether Grace can
also extricate itself from the project debt from its phosphate
mining joint venture at Four Corners.
    Despite today's rating affirmation, S and P cautioned that
Grace has greater-than-usual vulnerability to rating change in
the next year or two.
    "Uncertainty abounds as to the firm's future ownership,
management and direction," the rating agency said.
 Reuter
