S&P cuts RJO

Standard & Poor's said it lowered its long-term counterparty credit rating on RJO Holdings Corp. to CCC+ from B-.

At the same time, the agency said it lowered its issue rating on RJO's $50 million revolving credit facility to CCC+ from B- (recovery rating 4), the rating on its senior-secured, $385 million first-lien facility was lowered to CCC+ from B- (recovery rating 4, 30%-50% recovery in a default scenario) and the rating on the senior-secured, $150 million second-lien facility was lowered to CCC- from CCC (recovery rating 6, 0%-10% recovery).

S&P said it assigned a negative outlook because it sees the potential for the issuer's credit fundamentals to further deteriorate within the next few quarters.

At the same time, the agency said it has withdrawn its ratings at the company's request, noting that the rating actions result from several factors, which include reduced operating cash flows in the third quarter, realized and expected losses on marketable securities, a decline in excess net capital and reduced liquidity, as a result of the drawdown of $50 million in borrowings under the company's revolving credit facility.

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