NY -- Standard&Poor's CreditWire 8/5/98 -- Standard&Poor's today placed its ratings on AlliedSignal Inc. and AMP Inc. on CreditWatch with negative implications (see list below). The CreditWatch placement follows the announcement by AlliedSignal that it intends to buy all outstanding shares of AMP for $9.8 billion in cash in an unsolicited takeover bid. While AlliedSignal had financial flexibility for moderate acquisition activity, a transaction of this size was not factored in the ratings. The initial phase of all-debt financing would raise AlliedSignal's debt to capital to about 70%, although subsequent planned asset sales, secondary equity offering, and internally generated cash flow should reduce debt usage. If the company is successful in acquiring AMP, AMP's commercial paper
