S&P lowers Landmark FBO

Standard & Poor's said it lowered its ratings, including the corporate credit rating to B- from B, on Landmark FBO LLC.

The outlook is negative.

According to S&P, the downgrade reflects lower-than-expected earnings and reduced liquidity while a weaker U.S. economy and very high fuel prices have adversely affected demand for Landmark's core fueling and related services, with near-term prospects uncertain.

Those developments coincide with gradually tightening financial covenants, which results in relatively thin covenant cushions in Landmark's credit facility, the agency said.

In response, the company has accelerated its cost-cutting initiatives, which should stabilize results, at lower levels, S&P noted, stating that the B- corporate credit rating on Landmark reflects the company's very high debt leverage, very weak cash flow protection measures, the risks associated with the cyclical and competitive general aviation market, and modest earnings and cash flow.

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