Cloud-based e-commerce solutions provider Rithum Holdings Inc. (formerly CommerceHub Inc.) has seen sustained free operating cash flow (FOCF) deficits since its acquisition of ChannelAdvisor in November 2022. In addition, despite e-commerce industry tailwinds, Rithum's performance has been comparatively sluggish and our revised forecast calls for continued FOCF deficits this year. As a result, we revised our outlook to negative from stable, affirmed our 'B-' issuer credit rating, and affirmed all issue-level ratings. The negative outlook reflects our expectation for cash flow deficits that will cause liquidity to tighten over the next 12 to 18 months. We believe Rithum's debt capitalization is at risk of becoming unsustainable given persistently high base interest rates and its unhedged floating interest rate exposures. Specifically,
