Elevate Textiles Inc. Downgraded To 'B-' Following Weaker-Than-Expected Cash Flow; Outlook Negative - S&P Global Ratings’ Credit Research

Elevate Textiles Inc. Downgraded To 'B-' Following Weaker-Than-Expected Cash Flow; Outlook Negative

Elevate Textiles Inc. Downgraded To 'B-' Following Weaker-Than-Expected Cash Flow; Outlook Negative - S&P Global Ratings’ Credit Research
Elevate Textiles Inc. Downgraded To 'B-' Following Weaker-Than-Expected Cash Flow; Outlook Negative
Published Jan 29, 2020
4 pages (1541 words) — Published Jan 29, 2020
Price US$ 150.00  |  Buy this Report Now

About This Report

  
Abstract:

North Carolina-based Elevate Textile Inc. has underperformed our expectations and we now expect approximately negative $10 million free operating cash flow usage in fiscal 2020 because of investments to improve its supply chain. We are lowering our issuer credit rating on Elevate Textile to 'B-' from 'B'. At the same time, we are lowering our issue-level rating on the company's first-lien facility to 'B-' from 'B'. The recovery rating remains '3', indicating our expectation for meaningful (50% - 70%, rounded estimate 50%) recovery in the event of a payment default. We are also lowering our issue-level rating on the company's second-lien term loan to 'CCC+' from 'B-'. The recovery rating remains '5', indicating our expectation for modest (10% - 30%,

  
Brief Excerpt:

...+ North Carolina-based Elevate Textile Inc. has underperformed our expectations and we now expect approximately negative $10 million free operating cash flow usage in fiscal 2020 because of investments to improve its supply chain. + We are lowering our issuer credit rating on Elevate Textile to 'B-' from 'B'. + At the same time, we are lowering our issue-level rating on the company's first-lien facility to 'B-' from 'B'. The recovery rating remains '3', indicating our expectation for meaningful (50% - 70%, rounded estimate 50%) recovery in the event of a payment default. + We are also lowering our issue-level rating on the company's second-lien term loan to '###+' from 'B-'. The recovery rating remains '5', indicating our expectation for modest (10% - 30%, rounded estimate 15%) recovery in the event of a payment default. + The negative outlook reflects the potential for a downgrade if the company's turnaround initiatives are not successful or increasing trade tensions and market volatilities...

  
Report Type:

Ratings Action

Ticker
ITXN
Issuer
Elevate Textiles Inc.
Sector
Global Issuers
Country
United States
Region
United States
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Elevate Textiles Inc. Downgraded To 'B-' Following Weaker-Than-Expected Cash Flow; Outlook Negative" Jan 29, 2020. Alacra Store. Nov 07, 2026. <http://www.alacrastore.com/s-and-p-credit-research/Elevate-Textiles-Inc-Downgraded-To-B-Following-Weaker-Than-Expected-Cash-Flow-Outlook-Negative-2374796>
  
APA:
S&P Global Ratings’ Credit Research. (). Elevate Textiles Inc. Downgraded To 'B-' Following Weaker-Than-Expected Cash Flow; Outlook Negative Jan 29, 2020. New York, NY: Alacra Store. Retrieved Nov 07, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/Elevate-Textiles-Inc-Downgraded-To-B-Following-Weaker-Than-Expected-Cash-Flow-Outlook-Negative-2374796>
  
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