S&P Comment: Pension Acctg, Disclosure & Adjustments.

Business Editors

NEW YORK--(BUSINESS WIRE)--March 3, 2003

Standard & Poor's--Standard & Poor's Rating Services today has published two commentaries that provide its credit analysis perspective on the current accounting framework for retirement and other post-retirement liabilities and describes some new quantitative approaches to assessing these liabilities.

Both articles were written by Scott Sprinzen, credit analyst and a member of Standard & Poor's Accounting Task Force.

"We have not changed our methodology on pension liabilities, and no rating changes are expected to result from the enhancements discussed in these articles," Mr. Sprinzen said. "These enhancements represent a formalization of new analytical tools, rather than any change by Standard & Poor's to its criteria for assessing benefits liabilities."

"Pitfalls of U.S. Pension Accounting and Disclosure" discusses certain aspects of the current accounting framework from an analytic perspective and makes several recommendations with respect to increased public disclosure on pension-related matters that would benefit analysts and investors.

The companion article, "Adjusting Financials for Post Retirement Liabilities," provides information on refinements Standard & Poor's has made in certain financial adjustments and ratio definitions to help avoid the pitfalls discussed, and ensure that ratings on industrial companies fully reflect unfunded, defined benefit pension and other postretirement ...