S&P drops ASG Consolidated, debt

Standard & Poor's said it lowered its corporate credit rating on ASG Consolidated LLC to CCC+ from B-.

The outlook is negative.

At the same time, the agency lowered its issue-level rating on the company's senior secured debt to B from B+. The recovery rating remains 1, indicating that lenders could expect very high (90% to 100%) recovery in the event of a payment default.

S&P also lowered its ratings on ASG's senior subordinated notes to B- from B. The recovery rating remains 2, indicating an expectation for substantial (70% to 90%) recovery in the event of a payment default.

"The downgrade reflects the company's current dependence upon favorable business, financial, and economic conditions to meet its financial commitments, which appear to be unsustainable in the long term," S&P credit analyst Jeff Burian said in a news release. "ASG's debt is a very high multiple of EBITDA and a successful refinancing is unlikely, absent financial improvement."

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