S&P lowers UniTek to D

Standard & Poor's said it lowered its corporate credit rating on UniTek Global Services Inc. to D from CCC and the rating on the senior secured term loan to D from CCC-.

At the same time, S&P lowered the issue-level rating on the company's asset-based revolving credit facility due 2016 to CC from B-.

"If the company is unable to refinance its secured debt, we believe the company could pursue a distressed debt exchange or file for bankruptcy under Chapter 11," S&P said in a news release.

"The downgrade follows UniTek's announcement that it did not make a scheduled interest payment on May 29, 2013 on its senior secured term loan due 2018, which we consider to be a default under our timeliness of payments criteria," said S&P credit analyst Michael Weinstein in a news release.

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