S&P: Orchard Supply cut to D

Standard & Poor's said it lowered its corporate credit rating on Orchard Supply Hardware LLC to D from CCC- following its bankruptcy filing.

S&P also lowered its issue-level ratings on the company's credit facilities to D from CC. The recovery ratings on the facilities are unchanged at 5, indicating an expectation for modest (10% to 30%) recovery.

"We are lowering the ratings following the company's announcement that it filed for Chapter 11 bankruptcy. We understand that the filing will help facilitate the sale of a majority of the company's assets to Lowe's Cos. Inc. under Section 363 of the bankruptcy code," said S&P credit analyst Andy Sookram in a news release. "We expect the company to consider other offers. The sale of the company is subject to regulatory and court approval."

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