PowerTeam Services LLC Outlook Revised To Negative On Weaker-Than-Expected Credit Metrics, Ratings Affirmed

PowerTeam Services LLC's credit metrics have been weaker than expected because of challenging operating conditions and various one-time items. Therefore, we are revising our outlook on PowerTeam to negative from stable and are affirming our 'B' corporate credit rating on the company. At the same time, we are affirming our 'B+' issue-level rating on the company's first-lien debt and our 'CCC+' issue-level rating on its second-lien term loan. The negative outlook reflects the company's underperformance relative to our expectations over the past few quarters and the potential for further weakness in its operating performance during the rest of the year. Although we expect continued growth over the forecasted period, we believe that there is at least a one-in-three chance that

...+ PowerTeam Services LLC's credit metrics have been weaker than expected because of challenging operating conditions and various one-time items. + Therefore, we are revising our outlook on PowerTeam to negative from stable and are affirming our 'B' corporate credit rating on the company. + At the same time, we are affirming our 'B+' issue-level rating on the company's first-lien debt and our '###+' issue-level rating on its second-lien term loan. + The negative outlook reflects the company's underperformance relative to our expectations over the past few quarters and the potential for further weakness in its operating performance during the rest of the year. Although we expect continued growth over the forecasted period, we believe that there is at least a one-in-three chance that we could lower our ratings on the company if its credit metrics deteriorate such that its debt leverage remains above 6x or its free operating cash flow (FOCF)-to-total adjusted debt ratio is unlikely to approach...

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