S&P cuts AS America notes

Standard & Poor's said it lowered the issue-level rating on AS America Inc.'s $187.5 million senior secured notes to B- from B. The agency said it also revised the recovery rating to 5, indicating an expectation of modest recovery for lenders in the event of a payment default, from 4.

S&P said the revision reflects lower recovery prospects for lenders due to higher expected priority claims on the company's asset-based lending facilities.

The B corporate credit rating on AS America reflects the combination of what S&P considers to be the company's "weak" business risk and "highly leveraged" financial risk, the agency said.

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