S&P lowers Baker & Taylor

Standard & Poor's said it lowered the corporate credit rating on Baker & Taylor Acquisitions Corp. to B from B+.

At the same time, the agency said it lowered the rating on the company's $165 million senior secured notes to CCC+ from B-.

The downgrade reflects a slowing sales trend, ongoing margin pressures and our expectations that decreased funding to the institutional market will impair performance over the near term, S&P noted.

The outlook is stable.

The agency said that the rating on Baker & Taylor reflects the company's vulnerability to small changes in costs given its narrow operating margins, integration risk, customer concentration, high leverage levels and thin cash flow protection measures.

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