Research Update: Reichhold Industries Rating Lowered To 'B' On Subpar Third-Quarter Results; Outlook Is Stable Nov 08
- ID: 2127925
- November 2008
- Standard & Poors
On Nov. 21, 2008, Standard & Poor's Ratings Services 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. Third-quarter results were also hurt by raw material cost increases that exceeded price increases during the quarter. The rating action also incorporates our expectation that the fourth quarter could be materially...
Companies mentioned in this report are: Reichhold Industries Inc.
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