We project Livingston International Inc.'s 2016 cash flow to be lower than our previous forecasts, primarily due to the relative weakness in the Canadian currency that has increased balance-sheet debt and pressured demand in the company's end-markets. The company's adjusted debt-to-EBITDA increased significantly in 2015 and we expect the company to exit 2016 at more than 7.5x. At the same time, we view Livingston's covenant cushion as tight. As a result we are revising our outlook on the company to negative from stable and affirming our ratings on Livingston, including our 'B' long-term corporate credit on the company. The negative outlook reflects our expectation that, despite management's steps to reduce costs and manage its liquidity, there is increased risk that
