S&P cuts WCI Communities to D

Standard & Poor's said it lowered its corporate credit rating on WCI Communities Inc. to D from CC after the company announced that it had voluntarily filed for relief under Chapter 11 of the U.S. Bankruptcy Code.

Concurrently, the agency said it lowered its ratings on $650 million of senior subordinate notes to D from C and withdrew its rating on a recently rated $375 million second-lien note issue that ultimately was not sold.

S&P said that the company reports that it has reached an agreement with its principal secured lenders to gain access to more than $40 million of cash to continue operating its business on an interim basis.

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