S&P downgrades Werner

Standard & Poor's said it lowered its corporate credit rating on Werner Holding Co. (DE) Inc. to CCC+ from B on concerns that greater-than-anticipated competitive pressures and the impact of cost increases on earnings and cash flows could lead to near-term covenant compliance and liquidity issues.

S&P also lowered the senior secured bank debt rating to CCC+ from B and the subordinated debt rating to CCC- from CCC+.

The outlook is negative.

S&P said the ratings on privately owned Werner reflect its significant customer concentration, limited end-market focus, modest scope of operations in niche and cyclical markets, very aggressive financial profile, and covenant compliance concerns. Ratings could be lowered again if liquidity declines further than expected or restructuring activities are delayed or not fully successful.

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