S&P lowers MEGA Brands

Standard & Poor's said it lowered its ratings on MEGA Brands Inc., including the long-term corporate credit rating on the company, to B+ from BB-.

The ratings remain on CreditWatch with negative implications, where they were placed April 20, the agency said, adding that the downgrade and CreditWatch listing reflect ongoing concerns that earnings and credit measures at MEGA Brands are much weaker than expected because of significant problems the company is facing with its Magnetix product.

These challenges include product recalls, product replacement and product liability settlement expenses, S&P said.

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