Research Update: Optiv Inc. Downgraded To 'CCC+' On Weak Interest Coverage And Refinancing Risk; Outlook Negative; Debt Ratings Lowered - S&P Global Ratings’ Credit Research

Research Update: Optiv Inc. Downgraded To 'CCC+' On Weak Interest Coverage And Refinancing Risk; Outlook Negative; Debt Ratings Lowered

Research Update: Optiv Inc. Downgraded To 'CCC+' On Weak Interest Coverage And Refinancing Risk; Outlook Negative; Debt Ratings Lowered - S&P Global Ratings’ Credit Research
Research Update: Optiv Inc. Downgraded To 'CCC+' On Weak Interest Coverage And Refinancing Risk; Outlook Negative; Debt Ratings Lowered
Published Aug 28, 2024
7 pages (2878 words) — Published Aug 28, 2024
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

Optiv Inc.'s financial performance has been weak over the past few quarters, including a 2% year-over-year decline in revenue and 13% decline in reported EBITDA through its second quarter ended June 30, 2024. We forecast Optiv's S&P Global Ratings-adjusted leverage above 10x, and EBITDA interest coverage below 1x, which we view as unsustainable. As such, we lowered our issuer credit rating on Optiv to 'CCC+' from 'B-'. We also lowered our rating on the company's first-lien term loan to 'CCC+' from 'B-' and second-lien term loan to 'CCC-' from 'CCC' as a result. The negative outlook reflects the risk that we could lower the rating if the company does not refinance its revolver and first-lien term loan before they become

  
Brief Excerpt:

...- Optiv Inc.'s financial performance has been weak over the past few quarters, including a 2% year-over-year decline in revenue and 13% decline in reported EBITDA through its second quarter ended June 30, 2024. - We forecast Optiv's S&P Global Ratings-adjusted leverage above 10x, and EBITDA interest coverage below 1x, which we view as unsustainable. - As such, we lowered our issuer credit rating on Optiv to '###+' from 'B-'. We also lowered our rating on the company's first-lien term loan to '###+' from 'B-' and second-lien term loan to '###-' from '###' as a result. - The negative outlook reflects the risk that we could lower the rating if the company does not refinance its revolver and first-lien term loan before they become current in May and August 2025, respectively....

  
Report Type:

Research Update

Ticker
OPTV
Issuer
Optiv Inc.
GICS
IT Consulting & Other Services (45102010)
Sector
Global Issuers
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Optiv Inc. Downgraded To 'CCC+' On Weak Interest Coverage And Refinancing Risk; Outlook Negative; Debt Ratings Lowered" Aug 28, 2024. Alacra Store. May 18, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Optiv-Inc-Downgraded-To-CCC-On-Weak-Interest-Coverage-And-Refinancing-Risk-Outlook-Negative-Debt-Ratings-Lowered-3238720>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Optiv Inc. Downgraded To 'CCC+' On Weak Interest Coverage And Refinancing Risk; Outlook Negative; Debt Ratings Lowered Aug 28, 2024. New York, NY: Alacra Store. Retrieved May 18, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Optiv-Inc-Downgraded-To-CCC-On-Weak-Interest-Coverage-And-Refinancing-Risk-Outlook-Negative-Debt-Ratings-Lowered-3238720>
  
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