S&P cuts Oneida, rates loan CCC+

S&P said it lowered its corporate credit rating on Oneida Group Inc. to CCC from CCC+.

The outlook is negative.

At the same time, the agency assigned its CCC+ issue level rating and 2 recovery rating to the extended first-lien term loan B and lowered the issue-level ratings on its nonextended first-lien term loan A to CCC+ from B-.

The 2 recovery rating indicates an expectation for a substantial (70%-90%; rounded estimate: 70%) recovery in the event of a default.

S&P said the downgrade reflects a belief that Oneida may not be able to maintain sufficient liquidity to service its debt or run its business and could default on its financial covenants absent a refinancing of its asset-backed lending facility and term loan.

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