S&P cuts Brunswick Rail, notes to CC

S&P said it lowered its long-term corporate credit rating on Brunswick Rail Ltd. to CC from CCC-.

The outlook remains negative.

At the same time, the agency downgraded its issue rating on the $600 million 6½% senior unsecured notes due 2017, issued by Brunswick's wholly owned subsidiary Brunswick Rail Finance Ltd., to CC from CCC-.

The downgrade follows Brunswick's announcement that it intends to launch a tender offer on its $600 million unsecured notes due in November 2017.

S&P said it understands that the company has been negotiating with a group of bondholders and proposed a number of options for restructure. Different conditions included an all-cash offer and combinations of cash and a settlement in kind and cash and new debt. Bond holders' representatives have not accepted any of these offers and their counter-offers were rejected by the company.

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