On May 2, 2002, Standard&Poor's lowered its corporate credit rating and subordinated debt rating on kitchenware manufacturer WKI Holding Co. Inc. to 'D' following the nonpayment of interest due May 1, 2002, on the company's $200 million 9 5/8% subordinated notes. At the same time, Standard&Poor's affirmed its 'CC' rating on the company's senior secured bank loan. The company was restricted from making the interest payment on the subordinated notes because it would have caused the temporary waiver of the bank covenant defaults to expire. The temporary waiver is currently scheduled to expire on May 30, 2002, after which the company will be in default under its credit agreement, unless an amendment to the credit agreement
