S&P cuts Ahern Rentals

Standard & Poor's said that it lowered Ahern Rentals Inc.'s ratings, including the corporate credit to D from B- and the rating on the company's second-lien secured notes to D from CCC.

The D ratings reflect the nonpayment of interest on Ahern's senior secured notes due 2013, S&P said. Ahern has elected not to make its scheduled Feb. 15 interest payment on its notes.

The company decided on this course of action despite the apparent improvement in its business and availability under its revolving credit facility, the agency added.

Ahern has entered into a forbearance agreement with a majority of lenders under its credit agreement and is seeking financing alternatives related to its upcoming maturities, S&P said.

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