S&P cuts Rural/Metro debt to D

Standard & Poor's said it lowered its corporate credit rating on Rural/Metro Corp. to D from SD.

At the same time, the agency lowered its rating on senior secured debt to D from CC and affirmed the D rating on the unsecured debt. The recovery rating on the first-lien notes is 2, indicating the expectation for substantial (70%-90%) recovery in the event of a payment default, and 6 on the unsecured notes, indicating the expectation for negligible (0% to 10%) recovery in the event of a payment default.

S&P said the downgrade follows Rural/Metro's Aug. 4 filing for Chapter 11 bankruptcy protection under a prepackaged reorganization.

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