S&P turns Ahern Rentals view to developing

S&P said it revised Ahern Rentals Inc.’s outlook to developing from negative and affirmed all its ratings on the company, including the CCC rating on the senior secured second-lien notes. The company’s $550 million of 7 3/8% notes mature in May 2023.

“Healthier demand and improving leverage–we forecast S&P Global Ratings-adjusted debt to EBITDA will fall to the 5x area by the end of 2021–should support Ahern Rentals Inc. refinancing its senior secured second-lien notes due in 2023,” S&P said in a press release.

The outlook reflects the likelihood of a positive or negative rating action within the next 12 months, depending on Ahern's ability to refinance its notes before its ABL becomes current and whether we believe the transaction would let it maintain adequate liquidity, the agency said.

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