S&P lowers Broadview

Standard & Poor's said it lowered the rating on Broadview Network Holdings Inc.'s $300 million of senior secured notes due 2012 to D from C.

The company has a corporate credit rating of D.

The recovery rating on the notes remains at 5, indicating 10% to 30% expected recovery in a default.

This downgrade reflects Broadview's filings yesterday of its prepackaged plan of reorganization and Chapter 11 bankruptcy petitions, S&P said.

Under the terms of the prepackaged plan, the 2012 secured notes will be converted into $150 million of new 10½% senior secured notes due 2017 and 97½% of the common stock of the reorganized company.

Upon the company's completion of its restructuring, the agency said it expects to raise the corporate credit rating.

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