Vericast Corp.'s asset-based lending (ABL) revolving credit facility and term loan are now current according to the springing maturities outlined in its credit agreements, which increases the risk of a payment default or distressed exchange over the next 12 months. We are lowering our issuer credit rating and issue-level ratings on Vericast to 'CCC' from 'CCC+'. The negative outlook reflects the risk that the company will be unable to refinance its 8.375% senior secured notes at par ahead of the May 2022 springing debt maturities for its ABL revolver and term loan, which could lead to a liquidity event or distressed exchange. We do not believe the company will organically generate sufficient cash to service its 8.375% notes, thus it
