S&P cuts American Residential

Standard & Poor's said it lowered its corporate credit rating on American Residential Services LLC to B- from B. The outlook is stable.

At the same time, the agency said it lowered its issue-level rating on the company's $165 million senior secured second-lien notes due 2015 to B- from B. The recovery rating is unchanged at 4, indicating an expectation of average recovery for noteholders in the event of a payment default.

The agency said it also lowered its issue-level rating on the company's $50 million senior secured holding company notes to CCC from CCC+. The recovery rating is 6, indicating an expectation of negligible recovery in the event of a default.

"The company's operating performance deteriorated as a result of operational and weather-related factors in the first half of 2012 and we believe its credit measures weakened accordingly," said S&P credit analyst Linda Phelps in a news release.

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