S&P drops Mecachrome to CC

Standard & Poor's said it lowered Mecachrome International Inc.'s long-term corporate credit rating to CC from B and revised the CreditWatch implications to developing from negative.

The CC rating indicates that Mecachrome is highly vulnerable to nonpayment of its financial obligations, the agency noted.

The action follows the company's announced management change and its delay in publishing financial results for the third quarter.

S&P said the downgrade also reflects its view that, under the current debt market conditions and with the company's frequent management changes, there is now a much higher likelihood that Mecachrome could be denied access to its €75 million secured revolving credit facility.

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