LaserShip Inc.'s (d/b/a OnTrac) liquidity has weakened considerably following its recent subdued financial performance. In addition, we have revised our forecast to reflect a more-protracted improvement in its profitability. Therefore, we revised our outlook on the company to negative from stable and affirmed our 'CCC+' issuer credit rating. At the same time, we affirmed our 'CCC+' issue-level rating on OnTrac's senior secured first-lien debt and our 'CCC-' issue-level rating on its senior secured second-lien debt. The negative outlook reflects our belief that the company's continued free cash flow deficits will render it vulnerable to a liquidity shortfall, which could lead to a payment default or cause management to consider undertaking a distressed restructuring in the near term. Amid its weakening
