S&P lowers Citation

Standard & Poor's said it lowered its corporate credit rating on Citation Corp. to D from CCC+ after the company announced it has filed for Chapter 11 protection in U.S. Bankruptcy Court.

The agency said it also lowered its issue rating on Citation's senior secured revolving credit facility to C from B- and its rating on Citation's senior secured term loan to D from CCC-.

Under a "prepackaged" plan filed by Citation with the bankruptcy court, the company would continue to make timely interest payments on the revolving credit facility while in bankruptcy, the agency noted.

In addition, S&P said it affirmed its 1 recovery rating on Citation's revolving credit facility and raised its recovery rating on Citation's term loan facility to 3 from 4.

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