S&P lowers High Ridge Brands

S&P said it lowered its corporate credit rating on CDR HRB Holdings Inc. and High Ridge Brands Co. to CCC from B-.

The outlook is negative.

At the same time, the agency lowered its rating on the $250 million 8 7/8% senior notes due in 2025 to CC from CCC. The recovery rating is 6, indicating an expectation for negligible recovery (0%-10%; rounded estimate: 0%) in the event of a default.

S&P said the action reflects the company’s dwindling cash flow and unsustainable capital structure following the 40% drop in profits over the past two quarters.

“We estimate EBITDA may not cover interest payments,” the agency said in a news release.

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