S&P cuts Oriental Trading

Standard & Poor's said it lowered Oriental Trading Co. Inc.'s $460 million first-lien facility to D from CC and kept the 4 recovery rating on this debt, indicating a 30% to 50% expected recovery in a default.

The downgrade reflects the company's filing of a voluntary petition for Chapter 11 bankruptcy protection. The company indicated that it obtained a $40 million debtor-in-possession facility from existing lenders, the agency said.

The company's proposed restructuring plan would allow it reduce its debt by about 70% and continue its operations, S&P said.

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