...- U.S. action sports apparel company Boardriders Inc. recently announced fiscal 2019 (ended Oct. 31, 2019) operating results that were below our expectations, and we believe cash flow will be negative again in fiscal 2020. - The company also indicated it may not be able to comply with its total leverage covenant over the next few quarters without an action such as a covenant amendment or equity cure. - We are affirming our 'B-' issuer credit rating on Boardriders, but we are revising our outlook to negative, reflecting our revised expectations for negative free operating cash flows (FOCF) through fiscal 2020 and the potential for a covenant violation. - The negative outlook reflects that we could lower the rating if the company does not successfully amend its leverage covenant to provide more cushion, or if we believe it will continue to generate negative free cash flow in 2021 because of unexpected incremental restructuring and growth initiatives that do not reverse recent sales declines....
