American Pad & Paper Placed on S&PWatch; Rtgs Lowered American Pad & Paper Co. of Delaware Inc.NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 7/14/98-- Standard & Poor's today lowered its corporate credit ratings on American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Pad (1) To fill a data structure with bits or characters. See padding. (2) (PAD) (Packet Assembler/Disassembler) A communications device that formats outgoing data into packets of the required length for transmission in an X. & Paper Co. and American Pad & Paper Co. of Delaware Delaware, state, United States Delaware (dĕl`əwâr, –wər), one of the Middle Atlantic states of the United States, the country's second smallest state (after Rhode Island). to single-'B' from single-'B'-plus. At the same time, Standard & Poor's lowered American Pad & Paper Co. of Delaware's subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". rating to triple-'C'-plus from single-'B'-minus. Both ratings were placed on CreditWatch with negative implications. The rating actions follow several quarters of very weak operating performance that has led to repeated violations of financial covenants under the company's $330 million bank credit facility, its key source of liquidity (The company is currently operating under a 30-day waiver The voluntary surrender of a known right; conduct supporting an inference that a particular right has been relinquished. The term waiver is used in many legal contexts. while it seeks to negotiate permanent changes to the credit agreement). Significant management changes have also led to questions regarding the company's strategic direction and operating policies. American Pad & Paper converts paper into envelopes, writing pads, folders, and printer paper. Operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: have been very weak during the past several quarters due to lags in passing on increased paper costs to customers, delays in implementing planned product mix changes, and changes in customer order patterns. Standard & Poor's plans to meet with management shortly to discuss its operating and financial strategies. ---CreditWire
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