OREANDA-NEWS. S&P Global Ratings today said it lowered its long-term corporate credit rating on Golfsmith International Holdings L. P. to 'D' (default) from 'CCC'. S&P Global Ratings also lowered its issue-level ratings on the company's second-lien debt to 'D' from 'CC'. The '6' recovery rating on the debt is unchanged. Finally, S&P Global Ratings expects to withdraw all of its ratings on the company after 30 days.

"The rating action follows Golfsmith's announcement that it had commenced a Chapter 11 case in Delaware and that its Golf Town Canada Inc. subsidiary had commenced creditor protection proceedings under the Companies' Creditors Arrangement Act in Ontario," said S&P Global Ratings credit analyst Donald Marleau.

Golfsmith has entered into a support agreement with a group of investors that hold more than 40% of the company's rated C$125 million senior secured second-lien debt, in which it is proposed that the debt be canceled and replaced with US$35 million of new secured notes.