S&P cuts Sheridan Group

Standard & Poor's said it lowered the corporate credit and senior secured debt ratings on Sheridan Group Inc. to B from B+, and placed ratings on CreditWatch with negative implications.

The downgrade reflects an updated view that operating performance in 2009 will be worse than expected, according to the agency.

"Our ratings now assume that EBITDA in 2009 will fall in the midteens percent area, resulting in leverage of around 5x, which is weak for the previous rating given our current view of the company's business profile," S&P analyst Ariel Silverberg said in a statement.

As of March 31, adjusted debt-to-EBITDA ratio was 4.3x.

The watch reflects the uncertain status around Sheridan's revolving credit facility, S&P said.

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