S&P cuts Cinram International, rates loan BB-

Standard & Poor's said it lowered its corporate credit rating on Cinram International Inc. to BB- from BB, following the company's announcement that it had successfully converted the business into an income trust.

The ratings were removed from CreditWatch with negative implications, where they were placed March 3, the agency noted.

In addition, S&P said it assigned its BB- bank loan rating and 4 recovery rating to Cinram's $825 million secured bank facility due 2011.

The outlook is stable.

S&P added that the ratings on Cinram reflect the company's weak business risk score, which is based on customer and product concentration, seasonality and the commodity-like nature of the media replication industry that is vulnerable to shifts in technology and availability of hit new releases.

These factors are partially offset by Cinram's strong market position as the world's largest independent manufacturer of prerecorded multimedia products, solid credit measures, management's track record of adapting to changing technologies and reasonable industry growth prospects in the next couple of years, S&P said.

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