S&P cuts Commercial Barge, rates loan B-

Standard & Poor's said it assigned a B- issue rating to the proposed $450 million senior secured term loan B, issued by Commercial Barge Line Co. with a recovery rating of 3.

Commercial Barge is revising the terms of its proposed recapitalization by splitting its proposed $650 million second-lien term loan into a $450 million secured term loan B and a $200 million second-lien term loan.

Based on the revised transaction, S&P also lowered its ratings on the newly reduced $200 million second-lien term loan to CCC from B- with a recovery rating of 6.

The agency maintained its B- corporate credit ratings on both Commercial Barge and its parent company, American Commercial Lines Inc.

S&P said it downgraded both entities on Feb. 25 based on its view that the company is weakening its already highly leveraged financial risk profile by paying a $210 million debt-financed dividend to its owners pro forma for the refinancing.

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