S&P lowers Muzak

Standard & Poor's said it lowered Muzak Holdings LLC and Muzak LLC's corporate credit ratings to D from CCC-.

The downgrade follows Muzak's announcement of its Chapter 11 filing.

The agency also lowered Muzak LLC's $220 million 10% senior notes to D from CC recovery rating unchanged at 5, and Muzak Holdings' 13% senior discount notes and Muzak LLC's $115 million 9.875% senior subordinated notes to D from C with recovery ratings unchanged at 6.

"EBITDA declined because of higher operating costs relating to increased bad debt expenses, benefit costs and IT-related costs," S&P analyst Tulip Lim said in a statement.

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