S&P drops Del Laboratories

Standard & Poor's said it lowered its corporate credit rating on Del Laboratories Inc. to CCC+ from B- and placed most of the ratings on CreditWatch with developing implications.

At the same time, the agency said it lowered the rating on the company's senior secured floating-rate debt to B- from B, while the recovery rating, which is not on CreditWatch, was affirmed at 2.

S&P noted that it also lowered ratings on the company's senior subordinated notes to CCC- from CCC.

The agency said that the downgrade reflects its concern regarding Del Laboratories' liquidity as a result of the trustees' notification that a default has occurred under the indentures for the company's $185 million senior secured floating-rate notes due 2011 and its $175 million 8% senior subordinated notes due 2012.

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