S&P lowers Test Center

Standard & Poor's said it lowered Test Center LLC's corporate credit rating to B+ from BB- and its $25 million senior secured revolving credit facility due 2012 and $190 million senior secured term loan B due 2013 to BB- from BB. The recovery rating remains unchanged at 2.

The outlook is stable.

The agency said the downgrade is based on its expectation that the company will need to draw on its cash balances for further debt repayment to avoid a violation of its bank debt covenants. S&P believes that the company faces a significant challenge to increase its EBITDA sufficiently to reestablish an appropriate margin of covenant compliance.

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