Avison Young (Canada) Inc. Senior Secured Term Loan Rating Lowered To 'B-' From 'B'; 'B-' Issuer Credit Rating Affirmed

We believe the waiver of certain covenants on Avison Young (Canada) Inc.'s revolving credit facility could lead to higher future draws before a hypothetical default. We have also lowered our post-default enterprise value forecast to reflect an emergence-level EBITDA that is closer to the company's recent EBITDA performance. As a result, we are lowering our issue-level rating on the company's senior secured term loan due 2026 to 'B-' from 'B', in line with our 'B-' long-term issuer credit rating on the company. We are affirming our 'B-' long-term issuer credit rating on the company. The stable outlook reflects our expectation that Avison Young will maintain EBITDA cash interest coverage of 1.2x-1.5x and adequate liquidity. The company also benefits from no

...September 16, 2020 - We believe the waiver of certain covenants on Avison Young (Canada) Inc.'s revolving credit facility could lead to higher future draws before a hypothetical default. We have also lowered our post-default enterprise value forecast to reflect an emergence-level EBITDA that is closer to the company's recent EBITDA performance. - As a result, we are lowering our issue-level rating on the company's senior secured term loan due 2026 to 'B-' from 'B', in line with our 'B-' long-term issuer credit rating on the company. - We are affirming our 'B-' long-term issuer credit rating on the company. - The stable outlook reflects our expectation that Avison Young will maintain EBITDA cash interest coverage of 1.2x-1.5x and adequate liquidity. The company also benefits from no near-term debt maturities. TORONTO (S&P Global Ratings) Sept. 16, 2020--, S&P Global Ratings said today it lowered its issue-level rating on Avison Young (Canada) Inc.'s senior secured term loan due 2026 to 'B-'...

Ratings Action