S&P downgrades Rain CII

S&P said it lowered the long-term corporate credit rating on Rain CII Carbon LLC to B from B+.

The agency said it lowered the rating on Rain CII's senior secured notes to B from B+.

S&P also said it revised the recovery rating on the notes to 4H from 4. The recovery rating reflects an expectation of 30% to 50% expected default recovery.

The outlook is stable.

The downgrades reflect an expectation that Rain CII's operating performance and financial profile will remain subdued over the next 12 months at least given still-challenging end markets, S&P said.

The company's operating performance in 2015 was materially weaker than anticipated, the agency said.

Demand and profitability at its carbon and chemical business segments are likely to remain weak through 2016, although they may show some gradual improvement over 2015, S&P said.

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