S&P drops CMC Magnetic

Standard & Poor's said it lowered its long-term corporate credit rating and senior unsecured issue rating on CMC Magnetic Corp. to B from B+ and removed the ratings from CreditWatch, where they had been placed with negative implications on Oct. 12.

The outlook is negative.

S&P said that the downgrade reflects CMC's high refinancing risk, negative free cash flow and rising net debt as a result of declining profitability and aggressive capital spending.

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