S&P cuts Kloeckner

Standard & Poor's said it lowered the long-term corporate credit rating on Kleopatra Lux 1 Sarl, also known as Kloeckner Pentaplast, to CCC- from CCC+.

The outlook is negative.

The company's operating performance has been weaker than expected in the financial year that ended Sept. 30, while covenant test levels have tightened and foreign-currency volatility has added further pressure, S&P said.

Furthermore, the company's capital structure remains highly leveraged, a position that is considered to be unsustainable over the near term, the agency said.

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