S&P lowers Cash Store Financial to CC

Standard & Poor's said it lowered its issuer credit and issue-level ratings on Cash Store Financial Services Inc. to CC from CCC.

The 4 recovery rating on the senior secured notes, which indicates an expectation for average (30%-50%) recovery of principal if a default occurs, is unchanged.

The outlook is negative.

"The downgrade is in accordance with our criteria and follows Cash Store Financial's announcement that its board of directors has voted to authorize the company and its subsidiaries to bring an application in the Ontario Superior Court of Justice to seek protection from creditors under the Companies' Creditors Arrangement Act," S&P credit analyst Michael Leizerovich said in a news release.

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