...- YS Garments LLC's (d/b/a Next Level Apparel) disclosed that it has entered into an agreement with its lender group to waive its financial covenant for the second quarter ended June 30, 2023 through Sept. 30, 2024. The company would have breached its covenant in the second quarter, and its equity holder, Blue Point Capital Partners, has contributed payment-in-kind (PIK) preferred equity to repay debt. - The company's nonextending portions of its term loan and revolver have now become current, further pressuring liquidity in the near term. - Therefore, we lowered our issuer credit rating to '###' from 'B-', as we believe a default due to a balance sheet restructuring (including a potential debt repurchase below par) or liquidity crisis can be envisioned without unforeseen positive developments within the next 12 months. - Concurrently, we lowered our issue-level rating on the company's nonextended portion of its senior secured debt due in 2024 and extended tranches due in 2026 to '###'...
