Maxim Crane Works Holdings Capital LLC Downgraded To 'B-' On Expectation Of Weaker Demand; Outlook Negative

Due to the impact from the COVID-19 pandemic we believe demand for Maxim Crane's services (a provider of specialized crane services that generated $215 million of S&P-adjusted EBITDA last year) will significantly weaken in 2020. S&P Global Ratings anticipates organic revenue decline could be in the low-20% area this year, partially offset by the contribution of acquisitions made in 2019, will drive adjusted leverage to the high-6x area; As a result, we are lowering our issuer credit rating on Maxim Crane to 'B-' from 'B'. At the same time, we are lowering our rating on the company's second-lien notes to 'B-' from 'B'. Our '4' recovery rating remains unchanged. The negative outlook reflects our view that a prolonged economic downturn

...May 7, 2020 - Due to the impact from the COVID-19 pandemic we believe demand for Maxim Crane's services (a provider of specialized crane services that generated $215 million of S&P-adjusted EBITDA last year) will significantly weaken in 2020. - S&P Global Ratings anticipates organic revenue decline could be in the low-20% area this year, partially offset by the contribution of acquisitions made in 2019, will drive adjusted leverage to the high-6x area; - As a result, we are lowering our issuer credit rating on Maxim Crane to 'B-' from 'B'. At the same time, we are lowering our rating on the company's second-lien notes to 'B-' from 'B'. Our '4' recovery rating remains unchanged. - The negative outlook reflects our view that a prolonged economic downturn could lead to weaker equipment investment and lower demand for the company's services, and increase leverage beyond our current expectations. CENTENNIAL (S&P Global Ratings) May 7, 2020--S&P Global Ratings today took the rating actions listed...

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