S&P lowers Journal Register

Standard & Poor's said it lowered its corporate credit and other ratings for Journal Register Co. to D.

The action follows the company's announcement today that it has entered into a forbearance agreement with lenders, which includes a provision whereby interest under the credit agreement will accrue and will not be paid for the period July 24 through Oct. 31, the agency noted.

The agency added that it views this event as a meaningful departure from the original terms of the credit agreement, resulting in D corporate credit and issue-level ratings under its criteria.

In addition, S&P said that it revised its recovery rating on the company's first-lien credit facility to 4, indicating that lenders can expect average recovery in the event of a default, from 3.

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