S&P downgrades rating of Fidelity's parent FMR

THE REGION

Standard & Poor's downgraded its rating on Fidelity Investments parent FMR Corp. , citing lackluster performance at the Boston company's well-known mutual funds division. Standard & Poor's analyst Charles D. Rauch said FMR faces "stagnant earnings and weak profitability" compared with peer investment companies, explaning why the rating on Fidelity's long-term notes was reduced to "AA-minus" from "AA." Despite a mid-2005 restructuring, Fidelity's performance compared to peers is "a major disappointment given the power of FMR's franchise and its large economies of scale," Rauch wrote. A Fidelity spokesman, Vin Loporchio, said the downgrade won't affect the company since it doesn't plan large borrowings soon. The downgrade "has no impact on our business strategy or the services we deliver for our customers," Loporchio said. (Ross Kerber)

By a 20-18 vote, operation and engineering employees at New England Sports Network defeated an attempt to unionize the departments by the National Association of Broadcast Employees and Technicians. The union said pay is lower at NESN than at other Boston TV stations, and that employees have to work excessive mandatory overtime at a pay rate lower than their regular wages. NESN management convinced some employees to "vote against their own best interests," said Patrick Reilly , a graphics operator from Brighton and one of the union organizers. A NESN spokesman declined to comment. NESN is majority owned by the Boston Red Sox, with a minority stake held by the Boston Bruins. The New York Times Co., the parent company of The Boston Globe, owns a 17 percent stake in the Red Sox. (Jeffrey Krasner)

THE NATION

Federal regulators plan to fine big telecom equipment maker Nortel Networks Corp. as much as $100 million for using allegedly fraudulent accounting to meet company targets and Wall Street expectations, according to news reports. The Securities and Exchange Commission intends to seek the fine against the Toronto company in the first application of a new policy requiring staff attorneys to get approval from the SEC commissioners before entering into settlement talks with companies on fines. The SEC plan regarding Nortel was reported by the Wall Street Journal Online and Bloomberg News. SEC and Nortel spokesmen declined to comment. (AP)

DaimlerChrysler AG's Chrysler Group has received more buyout and early retirement requests than it forecast, signaling its efforts to reduce labor costs may pay off, according to a person with direct knowledge of the matter. About 6,400 US hourly workers asked to take the incentive, said the person, who asked not to be identified because the automaker isn't publicly releasing the figures. Chrysler spokeswoman Michele Tinson, who declined to comment on the response rate, said the company had hoped that 4,700 US hourly workers would accept the offers this year. (Bloomberg)

Tyson Fresh Meats Inc. recalled more than 40,000 pounds of ground beef shipped to Wal-Mart Stores Inc. stores in a dozen states after samples tested at a Sherman, Texas, plant showed signs of E. coli contamination. No illnesses had been reported. Tyson Foods Inc. said the recall is not related to contaminated ground beef that was distributed by California-based United Food Group LLC. None of the shipments were sent to stores in New England. (AP)

THE WORLD

Turning the tables on the United States amid growing worries over dangerous Chinese products, Beijing said some health supplements and raisins imported from America failed to meet China's safety standards and have been returned or destroyed. In Washington, a top US food safety official said the Food and Drug Administration was seeking more information from its Chinese counterparts, including whether they are "bona fide, science-based findings" or in retaliation for US actions. China said inspectors in the ports of Ningbo and Shenzen found bacteria and sulfur dioxide in products shipped by three American companies. No details were given on when or how the inspections were conducted. (AP)