S&P lowers Dixie Acquisition

Standard & Poor's said it lowered the corporate credit rating on FR Dixie Acquisition Corp. to B from B+.

The outlook is stable.

The agency also said it lowered the ratings on the company's $40 million revolving credit facility due 2018 and $280 million term loan B due 2020 to B from B+.

The recovery rating on the credit facility remains at 3, indicating 50% to 70% expected default recovery.

The downgrade reflects a view that low oil prices have hurt Dixie's operating performance relative to previous expectations, S&P said.

While the agency said it previously expected debt-to-EBITDA of 4x to 4.5x, Dixie's adjusted debt leverage will be 5x or higher this year.

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