S&P cuts Reddy Ice to CC

Standard & Poor's said it lowered the corporate credit rating on Reddy Ice Holdings Inc. and Reddy Ice Corp., its wholly owned operating subsidiary, to CC from B and on Reddy Ice Holding's outstanding senior discount notes due 2012 to C from CCC+ with 6 recovery rating.

The outlook is negative.

Ratings were removed from CreditWatch with negative implications where they were placed on Feb. 19.

The agency downgraded the senior secured debt to B from B+ and kept the rating on CreditWatch with negative implications with 2 recovery rating.

Concurrent with the exchange offer, Reddy Ice plans to refinance its existing senior secured debt with the proposed new $300 million secured first-priority notes due 2015.

S&P said the actions follow Reddy Ice's plans to offer to exchange up to $150 million of new secured second-priority notes due 2015 for senior unsecured notes due 2012.

The actions also reflect the view that, given ongoing weak macroeconomic conditions, the company's weak operating results will continue, the agency said.

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