Elevate Textiles Holding Corp. faces approaching maturities with its asset-based lending facility (ABL) due June 30, 2027 (undrawn as of Sept. 30, 2026), and its first-out and last-out term loans due Sept. 30, 2027. The company’s operating performance has strengthened over the last year and its S&P Global Ratings-adjusted leverage declined to 5.8x as of Sept. 30, 2026, from 6x as of the end of fiscal 2025. However, it faces heightened risk of a payment default or distressed debt exchange if it does not successfully refinance its capital structure over the next few months. Therefore, we lowered our issuer credit rating on Elevate to ‘CCC’ from ‘CCC+’. We also lowered by one notch our issue-level ratings on the first-out term
