S&P cuts Anchor Glass senior debt to B-

Standard & Poor's said it lowered its corporate credit and senior secured debt ratings on Anchor Glass Container Corp. to B- from B+ and removed the rating from CreditWatch with negative implications, where it was placed on Feb. 2. The outlook is negative.

S&P said the downgrade reflects the company's weaker-than-expected operating performance for 2004 and limited liquidity given lower-than-expected sales volume trends, elevated natural gas prices and increased raw-material costs.

In addition, S&P said the unexpected resignation of the chief executive officer in March gives rise to uncertainty regarding management's ability to drive operational initiatives and improve cash generated from operations.

Anchor is very aggressively leveraged with total debt to EBITDA at about 6.5x at Dec. 31, 2004 and EBITDA interest coverage at about 1.6x.

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