S&P lowers RLC

Standard & Poor's said it lowered RLC Industries Co.'s corporate credit rating to B+ from BB and placed it on CreditWatch with negative implications.

"The downgrade and CreditWatch listing reflect our assessment that the company will likely be in jeopardy of breaching the financial covenants governing its bank credit facility during the next few quarters," S&P analyst Andy Sookram said in a statement.

"This is due to continued weak end-market demand as a result of the poor U.S. housing market and declining commercial construction activities."

Specifically, the bank facility requires the company to maintain a total debt-to-EBITDA ratio of 4.4x, the agency noted.

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