S&P downgrades Bumble Bee

S&P said it lowered the corporate credit rating on Bumble Bee Holdings Inc. to B- from B and placed all of the ratings mentioned herein on CreditWatch with negative implications.

The agency also said it lowered the rating on the company's $605 million senior secured notes due in December 2017 to B- from B.

The recovery ratings remain at 3, indicating 50% to 70% expected default recovery.

S&P also said it lowered the rating on the company's $150 million senior paid-in-kind toggle notes due in March 2018 to CCC from CCC+.

The recovery ratings remain at 6, indicating 0 to 10% expected default recovery.

The ratings reflect a view of heightened refinancing risk given Bumble Bee's upcoming 2017 maturity, which remains unaddressed, and the uncertainty with regard to a Department of Justice settlement, S&P said.

The ratings could be lowered in the near term if the company does not address or resolve its upcoming asset-backed lending revolving credit facility maturity by early 2017, the agency said.

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