S&P: Cinram on watch

Standard & Poor's said it placed its BB long-term corporate credit and bank loan ratings on Cinram International Inc. on CreditWatch with negative implications.

S&P added that the CreditWatch placement follows Cinram's announcement that its board of directors has approved the conversion of Cinram into an income trust.

The agency noted it is concerned about the effect on the company's financial profile after conversion to an income trust, including maintaining the current debt level given the non-amortizing nature of the proposed new loans and reducing financial flexibility due to the significant increase in cash distributions to shareholders.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.