S&P Global Ratings has downgraded CPI Card Group Inc.'s corporate credit rating to CCC+ from B-, reflecting the rating agency's view that the company's capital structure is "unsustainable" at current levels of EBITDA.

The rating agency also expects the company's credit metrics to continue to weaken in 2018 after lower card volume demand and further pricing decreases led to a weaker-than-expected performance in the second half of 2017.

The rating agency does not expect a default scenario over the next 12 months as it expects the company to have enough liquidity availability to absorb any negative discretionary cash flow.

The outlook is negative, reflecting the rating agency's view that the company will likely keep facing operating challenges, causing its leverage to remain in the high teen percent area and its cash flows to remain negative over the next 12 months.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.