S&P lowers Vertellus

Standard & Poor's said it lowered its corporate credit rating on Vertellus Specialties Inc. to CCC+ from B-. The outlook is stable.

In addition, S&P lowered the rating on the company's $100 million asset-based revolving credit facility maturing in March 2015 to B from B+. The recovery rating, which remains unchanged at 1, indicates an expectation for very high (90% to 100%) recovery in the event of a payment default.

S&P also lowered the rating on the company's $345 million senior secured notes due October 2015 to CCC+ from B-. The recovery rating, which remains unchanged at 4, indicates an expectation for average (30% to 50%) recovery in the event of a payment default.

"Our downgrade of Vertellus reflects the continuation of oversupply conditions, particularly in vitamin B3 and to a lesser extent in picolines, which have resulted in weak operating margins in Vertellus' agriculture and nutrition business," said S&P credit analyst Pranay Sonalkar in a news release.

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