S&P drops Ginn-LA

Standard & Poor's said it lowered its corporate credit ratings on Ginn-LA CS Borrower LLC and Ginn-LA Conduit Lender Inc. to CC from CCC+.

At the same time, the agency said it lowered its rating on the borrowers' first-lien bank loan to CC from CCC+ and its rating on the borrowers' second-lien bank loan to C from CCC-.

The outlook remains negative.

According to S&P, the downgrades reflect its expectation that cash flow from operations will not be sufficient to meet Ginn-LA's near-term working capital needs and that it may not have adequate liquidity to make future debt service payments.

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