S&P lowers Cinram

Standard & Poor's said it lowered the long-term corporate credit rating on Cinram International Inc., a wholly owned indirect subsidiary of Cinram International Income Fund, to SD from CC and its senior secured term loan to D from CC.

The corporate credit and senior secured term loan ratings were removed from CreditWatch with negative implications, where they were placed March 25.

The agency affirmed the CCC+ rating on the company's senior secured revolving credit facility with 4 recovery rating.

"These rating actions follow the settlement of Cinram's below-par debt tender offer, which we view as being tantamount to default," S&P analyst Lori Harris said in a statement.

"We understand that the company is likely to use its cash balances, free cash flow, and proceeds from asset disposals to fund these debt repayments," Harris added.

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