S&P Global Ratings on April 3 lowered its issuer credit rating on Aretec Group Inc. to B- from B with a stable outlook.
At the same time, the rating agency downgraded the rating on the company's first-lien debt to B- from B, while the rating on the second-lien debt was lowered to CCC from CCC+. It also removed the company's ratings from CreditWatch where these were placed with negative implications on March 18.
In its ratings action, S&P Global Ratings took into account the market impact of the coronavirus pandemic on Aretec Group's earnings, debt-service capacity and leverage.
The stable outlook reflects the rating agency's view that Aretec Group's earnings and debt-service capacity will be under pressure over the next 12 months. S&P Global Ratings, however, expects the company to remain in a "sufficient liquidity position and maintain a comfortable cushion relative to the springing leverage covenant on its revolving credit facility."
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.