S&P downgrades United Site

Standard & Poor's said it lowered its corporate credit rating on United Site Services Inc. to SD, or selective default, from CC, along with its $265 million term loan to D from C as the loan amounts were fully exchanged for equity. The debt rating and 5 recovery rating on the term loan will be withdrawn. The CCC issue rating on its $100 million revolving credit facility was affirmed, and the 1 recovery rating is unchanged.

The actions follow news that the company has completed its financial restructuring, exchanging more than $400 million of its term loan and mezzanine debt for equity, S&P said.

The company's $100 million revolving credit facility remains in place, the agency said, and it had about $19 million available under the facility following the restructuring.

The SD rating reflects the view that the exchange was distressed, S&P said.

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