S&P drops CheckSmart

Standard & Poor's said it lowered its counterparty credit rating on CheckSmart Financial Co. (formerly Buckeye Check Cashing Inc.) to CCC+ from B.

The outlook is negative.

At the same time, the agency said it lowered the bank loan ratings on CheckSmart's senior secured first- and second-lien financing to CCC+ from BB- and to CCC- from CCC+, respectively, while it also revised the first-lien recovery rating to 4.

S&P noted that the downgrade was based on the company's exposure to adverse legislative actions in Ohio because the new law effectively eliminates payday lending in its current form.

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