Aretec Group Inc. Downgraded To 'B-' On Expectation Earnings Will Suffer From The Impact Of COVID-19; Outlook Stable

The market impact of COVID-19 has hurt Aretec's earnings, debt-service capacity, and leverage. As a result, we have lowered our issuer credit rating on Aretec to 'B-' from 'B'. At the same time, we lowered our rating on the company's first-lien debt to 'B-' from 'B' and on the second-lien debt to 'CCC' from 'CCC+'. The stable outlook reflects our expectation for Aretec's earnings and debt-service capacity to be under pressure over the next 12 months but for the company to stay in a sufficient liquidity position and maintain a comfortable cushion relative to the springing leverage covenant on its revolving credit facility. NEW YORK (S&P Global Ratings) April 3, 2020--S&P Global Ratings said today it lowered its issuer credit

...- The market impact of COVID-19 has hurt Aretec's earnings, debt-service capacity, and leverage. - As a result, we have lowered our issuer credit rating on Aretec to 'B-' from 'B'. - At the same time, we lowered our rating on the company's first-lien debt to 'B-' from 'B' and on the second-lien debt to '###' from '###+'. - The stable outlook reflects our expectation for Aretec's earnings and debt-service capacity to be under pressure over the next 12 months but for the company to stay in a sufficient liquidity position and maintain a comfortable cushion relative to the springing leverage covenant on its revolving credit facility. NEW YORK (S&P Global Ratings) April 3, 2020--S&P Global Ratings said today it lowered its issuer credit rating on Aretec Group Inc. to 'B-' from 'B'. The outlook is stable. At the same time, we lowered our rating on the company's first-lien debt, to 'B-' from 'B' and on the second-lien to '###' from '###+'. We also removed the ratings from CreditWatch where we...

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