S&P cuts CNA Holdings

Standard & Poor's said it lowered its ratings on the senior unsecured industrial revenue bonds of CNA Holdings Inc., a wholly owned subsidiary of Celanese AG, to B- from B and removed them from credit watch. S&P also affirmed its B+ corporate credit ratings on BCP Caylux Holdings Luxembourg SCA and its Celanese AG subsidiary and removed them from CreditWatch where they were placed with negative implications on Dec. 16.

The outlook is stable.

S&P said the affirmation reflects shareholders' approval of the domination and profit and loss transfer agreement, and the domination agreement becoming effective on Oct. 1.

The lower rating reflects the disadvantaged position of that unsecured debt versus the revolving credit facility, term loan and floating-rate term loan, all of which are secured, S&P said.

S&P also affirmed the B+ corporate credit rating on CNA Holdings and removed it from CreditWatch.

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