S&P cuts United Site to CCC+

Standard & Poor's said it lowered the corporate credit rating on United Site Services Inc. to CCC+ from B-, its senior secured first-lien revolving credit facility to B from B+ and senior secured second-lien term loan to CCC+ from B. The recovery rating for the first-lien facility remains 1.

The recovery rating on the second-lien facility was revised to 4 from 2.

The outlook is negative.

"The downgrade and negative outlook reflect our concern that the backdrop of a very weak construction market could further weaken the company's already depressed earnings and cash flow generation from its base business," S&P analyst James T. Siahaan said in a statement.

The company benefits from the fact that its debt does not need to be refinanced until 2012 and that it currently possesses adequate levels of headroom under its lone financial covenant, the agency said.

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