S/P MAY DOWNGRADE AFG <AFG> AND GENCORP <GY>
Standard and Poor's Corp said it may
downgrade AFG Industries Inc and GenCorp Inc because a
partnership affiliated with AFG and Wagner and Brown made a 2.2
billion dlr tender offer to acquire GenCorp.
    AFG has 185 mln dlrs of BB-plus subordinated debt and
GenCorp carries 100 mln dlrs of same-rated subordinated debt.
    Financing terms of the proposed acquisition are unknown,
including AFG's equity contribution to the partnership. S and P
said AFG's appetite for substantial acquisitions is aggressive.
The tender offer would likely heighten financial risk and
increase leverage for GenCorp, S and P said.
 Reuter
