Standard&Poor's Ratings Services' counterparty credit ratings on Lonestar Intermediate Super Holdings LLC (a wholly owned subsidiary of NEWAsurion Corp.) and its operating subsidiary Asurion LLC reflect the company's significant leverage and fluctuating credit metrics, which resulted in a leveraged balance sheet; its financial management strategy; and its dependence on new subscribers and contract renewals, which could challenge the sustainability of its leading competitive position. Offsetting these weaknesses are the company's operating performance, which is a key strength to the rating, and its cash-generating capabilities (as measured by revenue and EBITDA), which support the company's deleveraging capabilities despite difficult market conditions. In addition, the company has a well-integrated and effective business model and an experienced and knowledgeable management team
