S&P cuts American Commercial Lines, rates Barge loan B-

Standard & Poor's said it lowered its long-term corporate credit rating on Commercial Barge Line Co. to B- from B and the long-term corporate credit rating on parent company American Commercial Lines Inc. to B- from B.

The outlook on both companies is stable.

At the same time, S&P assigned a B- issue rating to Commercial Barge Line's proposed $650 million senior secured term loan with a recovery rating of 4, indicating expectations that lenders would receive an average (30%-50%) recovery in the event of a payment default.

"We believe the debt-financed dividend will further weaken CBL's already highly leveraged financial profile while a drought that began last year is hurting earnings," said S&P credit analyst Funmi Afonja in a news release.

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