S&P lowers Oreck

Standard & Poor's said it lowered its corporate credit ratings on Oreck Corp. to B- from B+ and lowered its ratings on the company's senior secured credit facilities to B- from B+, with recovery ratings of 4 remaining unchanged.

All ratings placed on CreditWatch with negative implications on Dec. 1 remain on CreditWatch negative, reflecting the company's weaker-than-expected operating performance and key credit protection measures below anticipated levels for the rating and tight financial covenants under its bank facility, the agency said.

S&P added that the ratings downgrade and remaining CreditWatch listing reflect its concerns about Oreck's liquidity, noting that the company remains out of compliance with its financial covenants and still does not have access to its revolving credit facility following its announced notice of technical default on its bank credit facility in mid-February.

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