S&P drops Tegrant

Standard & Poor's said it lowered its corporate credit rating on Tegrant Corp. to CCC from CCC+.

The outlook is negative.

At the same time, the agency said it lowered the ratings on the company's $265 million senior secured credit facilities to CCC+ from B and the rating on the company's $75 million second-lien term loan facility to CC from CCC-.

The recovery rating on the senior secured facilities was revised to 2 from 1, S&P said, adding that the recovery rating on the second-lien term loan facility remains 6.

S&P added that the downgrade reflects weaker-than-expected operating performance, a highly leveraged financial profile and concerns regarding the potential for liquidity to deteriorate in the face of tightening covenant restrictions for the next two quarters.

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