S&P drops Central Parking, gives loans B, CCC+

Standard & Poor's said it lowered its corporate credit rating on Central Parking Corp. to B from B+ and removed the ratings from CreditWatch with negative implications, where they were placed on Nov. 30, following the company's announcement that it had engaged The Blackstone Group LP to assist in pursuing a sale of the company.

S&P said it also assigned its bank loan and recovery ratings to Central Parking's proposed first- and second-lien credit facilities, adding that the company's $355 million first-lien credit facility was rated B with a recovery rating of 3 and the $50 million second-lien facility was rated CCC+ with a recovery rating of 5.

The rating on the company's existing $300 million senior secured credit facility was also lowered to B+ from BB- and the rating on Central Parking Finance Trust's convertible trust issued preferred securities was lowered to CCC from CCC+, the agency noted.

The outlook is negative.

According to S&P, the downgrade reflects Central Parking's substantially more aggressive financial policy and more highly leveraged capital structure following KCPC Holdings Inc. completing its acquisition of Central Parking.

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