S&P cuts Stratos Global

Standard & Poor's said it lowered its ratings on Stratos Global Corp., including the long-term corporate credit and the senior secured bank loan ratings to B from B+ and placed the ratings on CreditWatch with negative implications.

At the same time, the bank loan recovery ratings of 3 were affirmed, the agency said.

S&P added that the one-notch downgrade reflects weaker-than-expected operating results for the nine months ended Sept. 30 and concerns that Stratos' profitability, credit measures and financial flexibility will remain weak in the near term.

The CreditWatch placement reflects additional near-term concerns with respect to Stratos' ability to meet its financial covenants under its senior secured credit facility, the agency said.

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