S&P lowers ASG, loans, notes

Standard & Poor's said it lowered its corporate credit rating on ASG Consolidated LLC and its wholly owned subsidiary, American Seafoods Group LLC, to B- from B.

In addition, the agency said it lowered the issue-level rating on ASG's senior secured debt, consisting of its revolving credit and term loan facilities, to B+ from BB-. The recovery rating remains 1.

At the same time, the agency said it lowered its issue-level rating on ASG's senior subordinated notes to B- from B. The recovery rating remains 4.

S&P said it also removed all ratings from CreditWatch, where they had been placed with negative implications on Dec. 5, because of financial covenant cushion concerns. The outlook is stable.

"The downgrade reflects our concerns regarding ASG Consolidated's recent weakened operating results, its very aggressive financial policies, continued tight covenant cushion in 2011 and the potential for covenants to tighten again in 2012 if operating performance does not improve," said S&P credit analyst Jeffrey Burian in a news release.

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