Research Update: Neovia Logistics L.P. Downgraded To 'CCC-' On Uncertain Performance Results; Outlook Negative

Neovia Logistics L.P. has received a waiver from its lenders extending the reporting deadline for its year-end 2021 audited financial results and financial budget until the end of July. We also believe the company faces a more difficult macroeconomic environment, which could result in an increased likelihood it would enter into a restructuring transaction that we view as akin to default. Although the company is scheduled to report its financials by the end of July, we believe the delay results in uncertainty regarding our view of the company's future operating performance and its ability to maintain and renew contracts. Therefore, we have lowered our issuer credit rating to 'CCC-'. We have also lowered our issue-level rating on the company's first-lien

...- Neovia Logistics L.P. has received a waiver from its lenders extending the reporting deadline for its year-end 2021 audited financial results and financial budget until the end of July. - We also believe the company faces a more difficult macroeconomic environment, which could result in an increased likelihood it would enter into a restructuring transaction that we view as akin to default. - Although the company is scheduled to report its financials by the end of July, we believe the delay results in uncertainty regarding our view of the company's future operating performance and its ability to maintain and renew contracts. - Therefore, we have lowered our issuer credit rating to '###-'. We have also lowered our issue-level rating on the company's first-lien debt to '###-'. There is no change to the '4' recovery rating (rounded estimate: 35%). - The negative outlook reflects the uncertainty regarding the company's performance, as well as our expectations for weaker macroeconomic growth...

Research Update