S&P drops United Site

Standard & Poor's said that it lowered its corporate credit rating on United Site Services Inc. to CC from CCC+.

In addition, the agency said it revised the recovery rating on the company's second-lien term loan to five from 4.

The agency added that it left the recovery rating on the first-lien revolving credit facility unchanged at 1.

In conjunction with the downgrade of the corporate credit rating and revision to the recovery ratings, the agency said it lowered the ratings on the company's first-lien revolving credit facility and second-lien term loan to CCC and C, respectively.

"The downgrade and negative outlook reflect United Site Services' significant earnings deterioration through the first six months of 2009, along with the potential that the company may have difficulty meeting upcoming interest and principal obligations due to expected weak cash flows that could constrain liquidity," said S&P credit analyst James Siahaan.

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