S&P lowers Culligan, loans

Standard & Poor's said it lowered its corporate credit rating on Culligan International Co. to CC from CCC+. The outlook is negative.

At the same time, the agency said it lowered its issue-level rating on the company's first-lien term loans due November 2012 to CC from CCC+. The recovery rating on this debt remains 4. The agency said it also lowered its issue-level rating on the company's second-lien term loan due May 2013 to C, from CCC-. The recovery rating on this debt remains 6.

Subsequent to these ratings actions, the agency said it withdrew all ratings at the company's request.

S&P said the rating actions follow Culligan's proposal to its lenders to exchange its existing first- and second-lien term loans for a combination of new loans, cash and equity at a total consideration of less than 100% of principal plus accrued interest.

"Based on our criteria, we view the transaction as a distressed offer," said S&P credit analyst Rick Joy in a news release.

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