S&P downgrades Luxfer

Standard & Poor's said it lowered Luxfer Holdings plc's corporate credit rating to CC from CCC+ and the debt rating on the company's £131 million bonds due 2009 to C from CCC. All ratings remain on CreditWatch with negative implications, where they were placed on Dec. 21 to reflect uncertainty with regard to available liquidity upon the expiry of Luxfer's sole £20 million revolving credit facility.

S&P said the current facility has been extended from mid-February to the end of March to enable Luxfer to negotiate new, larger facilities with other institutions, which will require security over the assets of the group.

The downgrade reflects continuing uncertainty surrounding the adequate provision of longer-term financing, which S&P said it views as critical to Luxfer's ability to continue to trade and to honor its obligations.

The agency said Luxfer's ratings reflect its very tight liquidity situation, extremely challenging trading conditions in its key markets and its very aggressive financial structure. These factors are only partially moderated by the good, niche positions the company holds within some markets.

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