S&P lowers Newark

Standard & Poor's said it lowered Newark Group Inc.'s corporate credit rating to B from B+. Ratings remain on CreditWatch with negative implications, where they were placed on April 2.

According to the agency, the downgrade reflects an assessment that Newark's operating performance will continue to suffer for at least the next several quarters because of difficult industry conditions.

S&P said it expect earnings to decline further, causing a material weakening of credit metrics and a heightened risk that the company may violate its senior leverage covenant in its bank credit facility in the near term.

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