S&P cuts Ozburn-Hessey

Standard & Poor's said it lowered Ozburn-Hessey Holding Co. LLC's corporate credit rating to B- from B.

The outlook is negative.

"The downgrade reflects OHL's deteriorating operating profitability and cash flow adequacy, resulting from customer attrition, and challenges integrating acquisitions," S&P analyst Anita Ogbara said in a statement.

"Further, we expect credit ratios to continue to weaken over the next several quarters."

Ratings reflect the company's competitive end markets and high debt leverage, the agency said.

The contractual nature of the contract logistics/warehousing business as well as relatively stable industry fundamentals for the next few years partly offset these factors, the agency noted.

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