Research Update: LaserShip Inc. Downgraded To 'CCC-' From 'CCC+' On Weak Liquidity And Elevated Default Risk, Outlook Negative

Parcel delivery provider LaserShip Inc.'s (d/b/a OnTrac) liquidity is weakening because of ongoing cash flow deficits amid expectations for softening peak-season demand. Absent the receipt of additional capital, we project the company could exhaust its liquidity by the first quarter of fiscal year 2025, which we believe heightens the risk of a payment default or distressed exchange over the next six months. Therefore, we lowered our issuer credit rating on OnTrac to 'CCC-' from 'CCC+', our issue-level rating on its first-lien debt to 'CCC-' from 'CCC+', and our issue-level rating on its second-lien debt to 'C' from 'CCC-'. The negative outlook indicates that we could lower our rating on the company if it pursues a distressed debt transaction that we

...- Parcel delivery provider LaserShip Inc.'s (d/b/a OnTrac) liquidity is weakening because of ongoing cash flow deficits amid expectations for softening peak-season demand. - Absent the receipt of additional capital, we project the company could exhaust its liquidity by the first quarter of fiscal year 2025, which we believe heightens the risk of a payment default or distressed exchange over the next six months. - Therefore, we lowered our issuer credit rating on OnTrac to '###-' from '###+', our issue-level rating on its first-lien debt to '###-' from '###+', and our issue-level rating on its second-lien debt to 'C' from '###-'. - The negative outlook indicates that we could lower our rating on the company if it pursues a distressed debt transaction that we deem to be tantamount to a default. We could also lower our rating on OnTrac if we expect it will default on its debt obligations in the next six months....

Research Update