UPDATE 1-Credit rating agency S&P cuts France's Wendel to junk

* S&P cuts Wendel credit rating to junk.

* Wendel says no impact on its financing arrangements. (Updates with Wendel response, share price details)

PARIS, Oct 9 (Reuters) - Credit rating agency Standard & Poor's cut its rating on French investment group Wendel (MWDP.PA: Quote, Profile, Research) to "junk" status on Thursday, although Wendel said the decision would have little impact on the company.

S&P lowered its long-term ratings on Wendel, including the long-term corporate credit rating, to 'BB+' from 'BBB-'.

These ratings were also placed on CreditWatch with negative implications. S&P also lowered the short-term rating on the company to 'B' from 'A-3'.

"The rating actions reflect the continued decline of equity markets and the immediate negative effects on Wendel's loan-to-value (LTV) ratio, based on spot values," said Standard & Poor's credit analyst Andreas Kindahl.

"The exceptionally challenging financial market conditions have weakened the company's financial profile beyond what is tolerable for an investment-grade rating. Wendel's liquidity position remains strong, however, resulting from a long average debt maturity structure and significant cash balances at hand."

The short-term credit rating on Wendel was 'B'.

Wendel said it regretted S&P's decision but added that the group would be broadly unaffected by the move.