Research Update: Reichhold Industries Inc. Rating Lowered To 'CCC+' From 'B-', Issue-Level Ratings Also Lowered; The Outlook Is Negative Dec 11
- Language: English
- Published: December 2011
NEW YORK (Standard & Poor's) Nov. 21, 2008--Standard & Poor's Ratings Services today lowered its corporate credit rating on Reichhold Industries to 'B' from 'BB-'. The outlook is stable. At the same time we lowered our rating on the company's $195 million senior unsecured notes due 2014 to 'B-' from 'B+'. The recovery rating is unchanged at '5', which indicates our expectation for modest (10% to 30%) recovery in the event of a payment default. "The downgrades follow Reichhold's subpar third-quarter 2008 operating results, which reflect lower volumes from both of its segments," said Standard & Poor's credit analyst Henry Fukuchi. "Third-quarter results were also hurt by raw material cost increases that exceeded price increases during the quarter." The rating...
Companies mentioned in this report are: Reichhold Industries Inc.
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