...- On Feb. 5, Arvos LuxCo S.a.r.l. finalized the amendment of its current credit facilities. The terms include an extension of the maturities and a covenant amendment. - We expect Arvos to continue performing weakly and burning cash, and envision a specific default scenario, that is, minimum EBITDA covenant breach if the company fails to perform in line with the base case and improve profitability in the next 12 months. - We are therefore lowering our ratings on Arvos and its senior secured facilities--comprising a revolving credit facility (RCF) and notes--to '###' from 'B-'. The recovery rating remains '3', indicating our expectation of average (rounded estimate 50%) recovery in the event of payment default. We removed the ratings from CreditWatch where they were placed with negative implications on Oct. 1, 2020. - The negative outlook reflects our view that the group's profitability, cash flows, and liquidity might deteriorate more than anticipated amid the uncertain economic environment...
