S&P cuts Schmolz + Bickenbach

Standard & Poor's said it lowered to B from B+ the long-term corporate credit rating on Schmolz + Bickenbach AG.

The outlook is stable.

The agency also lowered the issue rating on the company's €258 million senior secured bond to B from B+. The recovery rating is unchanged at 3, indicating 50% to 70% expected recovery in a default.

The downgrade reflects the lower forecasts for Schmolz + Bickenbach's 2012 to 2013 EBITDA, based on the company's weak performance in the second quarter of 2012, S&P said, and an expectation of lackluster economic conditions in Europe, including a weakening steel and automotive industry.

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