...- Demand will slow significantly for North Carolina-based textile manufacturer Elevate Textiles Inc. since apparel retail doors are closed in an effort to slow the spread of the COVID-19 pandemic. Combined with the company's already-elevated leverage from high debt levels, we believe the company's capital structure has become unsustainable. - While we expect the company's liquidity position to weaken, it does not face near term debt maturities, and we do not forecast a covenant violation in the next 12 months. - We are lowering our issuer credit rating on Elevate to '###+' from 'B-'. The outlook is negative. - At the same time, we are lowering our issue-level rating on the company's first-lien credit facility to '###+' 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 '###+'. The...
