S&P cuts W.R. Grace to junk

Standard & Poor’s said it lowered its corporate rating on W.R. Grace & Co. to BB+ from BBB-. The outlook is stable.

S&P also assigned a recovery rating of 2 to the company’s senior secured debt and affirmed the company’s BBB- senior secured debt ratings. At the same time, S&P assigned a 6 recovery rating to the company’s unsecured debt and lowered the issue-level rating on unsecured debt to BB- from BB+.

S&P said its ratings, including the issue ratings, factor in the company’s existing capital structure and debt amounts.

“The rating reflects what we consider to be Grace’s ‘satisfactory’ business risk profile and ‘significant’ financial risk profile,” said S&P credit analyst Allison L. Czerepak in a news release.

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