EMI jerked off; junk not far off?

Strange goings-on at EMI as they mull the possibility of a merger with BMG. They're threatening legal action over a broker's report which suggested investors should sell EMI stock (a record company knee-jerk calling the lawyers in? How unusual); chances are they'll be less than happy with US credit brokers Standard & Poor marking down the value of its long-term credit status to one notch above "junk."

On the other hand, they did reckon that the company was stable and not bad as an investment. The S&P mark-down may lead to the cost of loans EMI takes out to be increased.