S&P cuts United Subcontractors

Standard & Poor's said it lowered United Subcontractors Inc.'s corporate credit rating to B- from B. The agency also downgraded the company's $295 million first-lien term loan due 2012 to B from B+, $65 million second-lien term loan due 2013 to CCC from CCC+ and $40 million revolving credit facility bank loan due 2011 to B from B+.

All ratings remain on CreditWatch with negative implications where they were placed on Aug. 28.

The downgrade reflects the difficult residential housing environment that could weaken the company's earnings and cash flow in the coming quarters, according to S&P.

With new housing starts likely to remain depressed in 2008, the agency said the company's credit metrics could deteriorate significantly from current levels. Limited liquidity is another concern, S&P said.

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