On April 15, 2003, Standard&Poor's Ratings Services placed the 'BBB' corporate credit rating and senior unsecured debt rating of The Pittston Co. on CreditWatch with negative implications, reflecting concerns over the level of the company's unfunded postretirement benefit liabilities, including defined benefit pension and retiree medical obligations. Much of Pittston's postretirement liabilities relate to the company's former coal operations. While ratings incorporated the retention of substantial liabilities related to this business, declining interest rates, the decline in the stock market, and increasing health care costs over the past two years have caused liabilities to increase. At year-end 2002, the pension was underfunded by about $186 million and the postretiree health obligation was about $541 million (debt was about
