Summary
Williams Companies, Inc. (WMB) issued this 8-K filing on February 4, 2002, to address significant market concerns regarding its former telecommunications subsidiary, Williams Communications Group, Inc. (WCG). The company announced proactive steps to strengthen its balance sheet and mitigate potential obligations related to WCG. These measures include potentially expanding asset sales and issuing equity if necessary. Notably, the major credit rating agencies have maintained WMB's credit ratings, though S&P initially expressed concerns that it later intended to retract a portion of.
Key Highlights
- 1Williams Companies is taking substantial steps to address market concerns about potential obligations related to its former subsidiary, Williams Communications Group (WCG).
- 2The company is prepared to expand its planned asset sale program and, if required, issue equity to strengthen its balance sheet.
- 3Major credit rating agencies have maintained WMB's credit ratings.
- 4S&P initially added negative comments regarding the impact of WMB's stock price decline on bank borrowing, but later stated it would retract a portion of this opinion.
- 5Williams is still determining if a charge will be recognized related to its guarantee of WCG obligations, which would be recorded as a loss from discontinued operations in 2001 results if required.
- 6Quantifying the potential WCG obligation is the final unresolved issue before Williams reports its 2001 earnings.