RCS Capital Corp. disclosed a significant impairment charge for the three months ended Sept. 30, 2015, and indicated that based on its current liquidity position, the company's ability to continue as a going concern might depend on successful execution of its strategic plans. We believe the charge indicates substantial deterioration in the company's business performance that is likely lead to further deterioration of its financial position, which could put the company at risk of breaching its loan covenants. In our view, without unforeseen positive developments, the company is likely to default over the next 12 months. Therefore, we have lowered our issuer credit rating on the company to 'CCC' from 'B'. The negative outlook reflects a one-third probability that we
