PowerTeam Services LLC has announced plans to refinance its capital structure and issue a distribution to shareholders. We are affirming our 'B' corporate credit rating. At the same time, we are assigning our 'B+' issue-level rating to the company's proposed first-lien credit facility, and our 'CCC+' issue-level rating on its proposed second-lien term loan. The negative outlook on PowerTeam reflects the company's proposed debt-funded distribution and potential that costs tied to future restructuring efforts will pressure credit measures over 2018. While we believe the company's cost management initiatives will contribute to longer-term margin improvement, we believe there is a one-in-three chance that credit metrics will deteriorate further, in which case we would lower our ratings. On Feb. 13, 2018, S&P
