S&P cuts ConMed loans

Standard & Poor's said it affirmed the BB- corporate credit rating on ConMed Corp.

The agency also said it lowered the credit rating on the company's senior secured revolving credit agreement and term loan to BB- from BB and affirmed the B rating on the senior subordinated convertible notes.

The recovery rating on the senior secured debt is revised to 3, indicating 50% to 70% expected recovery in a default, from 2.

The agency also said it affirmed the 6 recovery rating on the senior subordinated convertible notes, indicating 0 to 10% expected recovery in a default.

The outlook is stable.

The downgrade is a function of the increased size of this debt class relative to an estimate of the enterprise's value in the event of default, S&P said.

The ratings recognize the company's reduction in debt leverage over the past few years and improved liquidity, the agency said, but also reflects a view that debt-financed acquisitions are likely.

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