S&P lowers Contech to CC

Standard & Poor's said it lowered its corporate credit rating on Contech Construction Products Inc. to CC from CCC.

The company's ratings, including the issue-level ratings on its senior secured bank facilities, remain on CreditWatch, where they were placed with negative implications on June 18.

The agency said the downgrade and continued CreditWatch listing reflects its view that Contech will likely not be in a position to remain in compliance with its credit facilities because of the combination of still-weak construction end markets, restrictive bank facility covenants, constrained operating results and high debt levels. As a result, S&P thinks Contech will likely need to seek amendments or waivers of its covenant requirements and possibly pursue restructuring of its debt obligations.

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