As threatened, S&P has cut Icahn Enterprises (IEP), the investment firm controlled by billionaire Carl Icahn, to junk status.
The investment firm, which handles Icahn's own money, saw its unsecured debt rating fall from BB+ BBB-.
"The downgrade reflects IEP's elevated LTV ratio, which we now expect to remain between 45%-60% over the next 12 months," said S&P Global Ratings credit analyst Clayton Montgomery.
The agency said that most of Icahn's problems came from the deterioration of its portfolio (especially with positions like CVR Energy and Federal Mogul) and
S&P warned that this may happen back in February.
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