Standard & Poor's Ratings Services has updated our recovery analysis on U.S.-based CST Industries Inc.'s senior secured credit facility in conjunction with our downgrade of the corporate credit rating. Our simulated default scenario contemplates a default occurring in 2012 as the result of a sustained cyclical downturn resulting in customers delaying or suspending replacement and new purchase of storage tanks and covers. Under our simulated default scenario, we assumed CST would remain a viable business because of its good market position in storage tank manufacturing and its relatively diverse customer base. CST Industries Inc.'s (CST) capital structure consists of a $20 million senior secured revolving credit facility, a $155 million senior secured term loan with about $130 million outstanding, and...
Companies mentioned in this report are: CST Industries Inc.
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