S&P lowers Reichhold

Standard & Poor's said it lowered Reichhold Industries Inc.'s corporate credit rating to B- from B and its $195 million senior unsecured notes due 2014 to CCC+ with an unchanged recovery rating of 5 from B-.

The outlook is negative.

The agency said the downgrade reflects its expectation that continued softness in both of the company's segments will result in lower volumes and weaker operating results in 2009.

The downgrade also incorporates S&P's heightened concern over liquidity if business conditions continue to deteriorate, placing further pressure on operating margins and cash flow generation in the near term.

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