S&P lowers Sports Authority

Standard & Poor's said it lowered the corporate credit rating on Slap Shot Holdings Corp. and Subsidiaries, which does business as Sports Authority, to D from B-.

The agency also said it lowered the company’s issue-level rating on its term loan facility to D from B-.

On Jan. 15, the company missed the scheduled interest payment on its senior subordinated notes, S&P said.

The company has a 30-day grace period to make the payment, but the agency said it does not expect a payment to be made during this timeframe.

A payment default on the senior subordinated notes also triggers a cross-default provision on its term loan facility, the agency said.

The company is currently in talks with lenders in an effort to restructure its debt, S&P said.

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