GENCORP <GY> STAYS ON S/P CREDITWATCH, NEGATIVE
Standard and Poor's Corp said it is
keeping GenCorp Inc's 100 mln dlrs of BB-plus subordinated debt
on creditwatch with negative implications.
    S and P cited the company's announcement that it will
purchase up to 54 pct of its common stock shares for 1.6
billion dlrs. GenCorp will finance some of the buy back with
bank loans, the agency noted.
    GenCorp was originally placed on creditwatch for a possible
downgrade after a partnership affiliated with AFG Industries
Inc <AFG> and Wagner and Brown made a tender offer of 110 dlrs
per share, or 2.2 billion dlrs.
 Reuter
