S&P cuts Wornick, TWC Holdings

Standard & Poor's said it lowered its ratings on Wornick Co. and its parent, TWC Holdings LLC.

The corporate credit rating on both entities was lowered to CCC+ from B, the agency said.

The CreditWatch implications have been revised to developing from negative, ratings were initially placed on CreditWatch on Aug. 17, the agency noted, adding that the downgrade reflects uncertainty regarding the company's ability to receive a waiver from covenant violations that are likely at the end of the year, as well as very weak profitability, cash generation and liquidity.

A violation of the covenant in the unrated credit facility, if not waived, would also be an event of default under the company's $125 million secured notes, the agency said.

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