S&P cuts Oreck

Standard & Poor's said it lowered its corporate credit ratings on Oreck Corp. to CCC+ from B-.

At the same time, the agency said it lowered the ratings on the company's existing senior secured bank facility to CCC+ from B-.

In addition, S&P added that it lowered the ratings on the company's proposed senior secured first-lien credit facilities to B- from B, and on the second-lien facility to CCC- from CCC while the existing senior secured facility's recovery rating of 4 was affirmed.

The agency said that the proposed first- and second-lien facilities' recovery ratings of 2 and 6, respectively, were affirmed.

The outlook is negative.

According to the agency, the downgrade reflects its concerns about Oreck's very weak liquidity position without access to a revolving credit facility.

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