Culligan rating downgraded

ROSEMONT -- Culligan International Co. was downgraded by Moody's Investors Service following a "significant increase in leverage that has occurred as a result of weak operating performance on top of the May 2007 debt-financed dividend to shareholders." The new corporate rating is down one click to B3, while the second-lien debt is also one step lower at Caa2. The Rosemont-based company had a $900 million leveraged recapitalization in May, including a $375 million dividend to the parent. The new Moody's rating is one level below Standard & Poor's, which put the company on "watch negative" late last month.