S&P: Muzak lowered, off watch

Standard & Poor's said it lowered its ratings on Muzak Holdings LLC and Muzak LLC, including the corporate credit ratings to CCC+ from B-.

At the same time, S&P removed all of the ratings from CreditWatch. The outlook is negative.

S&P also cut both companies' senior unsecured rating to CCC- from CCC and Muzak LLC's senior secured bank rating to B- from B and subordinated rating to CCC- from CCC.

S&P said the downgrade and negative outlook are due to the expectation that Muzak's earnings weakness will be more significant and drawn out than expected, which will extend its discretionary cash flow losses and keep its credit measures and liquidity under pressure.

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