Standard & Poor's lowered its rating on Bombardier Recreational Products.
BRP’s long-term corporate credit rating was lowered to B- from B. S&P also lowered the rating on the company's $250 million (Canadian) senior secured revolving credit facility due 2011 to B+ from BB-. Finally, S&P lowered BRP’s rating on the $790 million (U.S.) senior secured term loan B due 2013 to B- from B.
Standard & Poor’s issues ratings from AAA, the highest, to D, which means payment is in default.
An obligation rated B is more vulnerable to non-payment than obligations rated BB, but the obligor currently has the capacity to meet its financial commitment, according to S&P. Adverse business, financial or economic conditions will likely impair the company’s capacity or willingness to meet its financial commitment on the obligation.
The plus/minus sign is used to show relative standing within the major rating categories.
S&P says all BRP ratings remain on CreditWatch with negative implications, where they were placed Nov. 24.