S&P downgrades Broder

Standard & Poor's said it lowered the corporate credit rating on Broder Bros. Co. to SD from CC and its $225 million 11¼% senior notes due 2010 to D from C with 6 recovery rating.

The downgrades follow Broder's announcement that it elected not to make its April 15 interest payment on the senior notes, according to the agency.

"In addition to the company's default on its scheduled interest payment on the senior notes, the SD rating also reflects our belief that the purchase may be at a substantial discount to the par amount of the outstanding issue," S&P analyst Bea Chiem said in a statement.

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