S&P lifts ACL, rates Commercial Barge B

Standard & Poor's said it assigned a B long-term corporate credit rating to Commercial Barge Line Co. and affirmed its B long-term corporate credit rating on parent American Commercial Lines (ACL).

The outlook is stable.

The agency also said it upgrade the rating on the company's $200 million senior secured second-lien notes to BB- from B+.

S&P also upgraded its $250 million senior unsecured payment-in-kind toggle notes issued by ACL I Corp., a parent of American Commercial Lines, to B- from CCC+.

The agency also revised the recovery ratings on these issues to reflect increased expectations of principal recovery in a payment default scenario.

The ratings consider the company's participation in the highly competitive and capital-intensive barge shipping industry, S&P said.

The ratings also reflect its exposure to various demand swings caused by economic changes, seasonally fluctuating export volumes and vulnerability to weather-related disruptions, the agency said.

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