S&P drops Anchor Glass

Standard & Poor's said it lowered its senior secured debt and corporate credit ratings on Anchor Glass Container Corp. to CCC from B- and placed the rating on CreditWatch with negative implications.

The actions reflect heightened concerns regarding the company's tight liquidity in view of its upcoming interest payment and deterioration in Anchor's highly leveraged financial profile, S&P said.

The agency said it is concerned that the company will not be able to improve its already weak liquidity position ahead of the $19 million interest payment due in August.

If Anchor's operating results in the next few months do not improve and working capital needs are greater than expected, liquidity could diminish further and the rating could be lowered again, S&P said.

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