S&P downgrades Floworks, notes

Standard & Poor's said it lowered its corporate credit rating on Floworks International LLC (formerly Shale-Inland Holdings LLC) to SD from B-.

At the same time, the agency lowered the issue-level rating on Floworks' $250 million senior secured notes due 2019 to D from B-. The recovery rating is 4, reflecting an expectation of average (30% to 50%; at the upper end of the range) recovery in the event of a conventional default.

S&P sad the downgrade follows the repayment of about $29 million of Floworks' outstanding $250 million senior secured notes due 2019 at below par value.

"Given our current corporate credit rating of B- on the company and the fact that investors will receive less than what was promised on the original securities, we view this exchange as distressed under our criteria," S&P credit analyst Michael Maggi said in a news release.

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