Central Parking Stalls; Beverage Co. Refreshed

Higher than anticipated cost structure and lower than expected parking lot utilization has led Moody's Investors Service to downgrade Central Parking Corp.'s debt ratings from Ba2 to Ba3. The outlook is stable on Central Parking's $175 million revolver and its $175 million term loan "B". Corporate America's demand for parking has waned due to higher unemployment and diminished job security, Moody's notes. Furthermore, the slow economy has increased the level of cost consciousness and reduced the number of high margin discretionary nighttime parking as fewer people venture out for discretionary spending such as entertainment, Moody's adds.

Central Parking's profitability over the past year has also been affected by high severance costs, high snow removal rates and higher property taxes. Moody's says the new ratings reflect the August 12 completion of an amendment for Central Parking's $350 million credit facility following waivers in its March 31 quarter for both its leverage and senior leverage ratio covenants. Calls to Mark Shapiro, senior v.p. and cfo of Central Parking, were not returned.

* Standard & Poor's has removed Le Nature's credit ratings from watch following the beverage manufacturer's announcement that it will now be able to satisfy its own plastic bottle needs internally after launching its own in-house production facility. S&P affirmed Le Nature's B+ corporate credit and senior secured debt ratings and its B- subordinated debt rating, which were placed on watch in June to reflect the company's commercial dispute over a contract with one of its key bottle suppliers. The outlook is stable for Le Nature's approximately $171 million of debt. Le Nature's has terminated its existing bottle supply contract and has agreed to buy plastic blow-molding equipment--which is used to produce plastic bottles--from the supplier at a fair market value, S&P notes. The company has also secured an arrangement with a third party to be a back up supplier of plastic bottles. Robert Lynn, chief revenue officer for Le Nature's, declined comment.