S&P lowers Chem Rx

Standard & Poor's said it downgraded Chem Rx Corp.'s corporate credit rating to B- from B and placed ratings on CreditWatch with negative implications.

The downgrade and watch reflect growing concern with the company's ability to operate within tightening financial covenants of its credit facility, given its growing selling, general and administrative expenses, according to the agency.

While ongoing revenue and gross profit improvements could encourage lenders to provide covenant relief, difficult credit markets and the company's declining EBITDA could make it difficult and expensive to obtain an amendment to its credit agreement, the agency noted.

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