S&P lowers Sotera Defense

Standard & Poor's said it lowered its corporate credit rating on Sotera Defense Solutions Inc. to CCC+ from B. The outlook is developing.

At the same time, S&P lowered its issue-level rating on the company's $243 million senior secured facilities (consisting of a $28 million revolving credit facility due 2016 and a $215 million term loan due 2017) to CCC+ from B. The recovery rating on this debt remains unchanged at 3, indicating an expectation for meaningful (50%-70%) recovery for lenders in the event of payment default.

"The downgrade reflects our view that the company may violate its leverage covenant in the current year," said S&P credit analyst David Tsui in a news release.

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