S&P downgrades MDC Partners

Standard & Poor's said it lowered MDC Partners Inc.'s corporate credit rating to B+ from BB- and senior unsecured debt rating to B+ from BB-.

The recovery rating is unchanged at 4, indicating 30% to 50% expected recovery in a default.

The outlook is stable.

Despite healthy organic revenue growth, the downgrade reflects an expectation that fully adjusted leverage will remain above the 4.25x threshold at the BB- rating level in 2011 because of debt-financed acquisitions, S&P said.

Given the company's aggressive growth strategy, the agency said it believes a B+ rating is more appropriate for the increased level of debt leverage and operating risk until acquisition activity slows, the agency said.

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