S&P downgrades Cinram

Standard & Poor's said it lowered the corporate credit and bank loan ratings on Cinram International Inc., a wholly owned indirect subsidiary of Cinram International Income Fund, to B+ from BB- and removed the ratings from CreditWatch with negative implications where they were placed Nov. 6.

The outlook is stable.

S&P said the downgrade reflects Cinram's weakened financial performance for the nine months ended Sept. 30.

Ratings reflect the company's limited financial flexibility and vulnerable business risk profile, which is based on customer and product concentration, seasonality and the commodity-like nature of the media replication industry, the agency said.

Partially offsetting these factors are Cinram's strong market position as the world's largest manufacturer of prerecorded multimedia products, solid credit protection measures and management's track record of adapting to changing technologies, S&P said.

The issuer has an adjusted debt-to-EBITDA ratio of less than 3 times.

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