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S&P downgrades Altegrity
Standard & Poor’s said it lowered the corporate credit rating on Altegrity Inc. to CCC- from CCC+.
The agency also said it lowered the rating on the senior secured asset-backed revolver and first-lien debt to CCC from B-. The recovery ratings on the revolver and first-lien debt are 2, indicating 70% to 90% expected default recovery.
S&P also said it lowered the ratings on Altegrity’s senior secured second-lien debt, senior secured third-lien debt, senior unsecured debt and subordinated debt to C from CCC-.
The recovery rating on this debt is 6, indicating 0% to 10% expected default recovery.
The outlook is negative.
The downgrade follows the U.S. Office of Personnel Management’s notification to the company that it will not exercise its remaining options on its fieldwork and support services contracts, S&P said.
Altegrity’s already weak liquidity will be further strained, potentially resulting in a liquidity event or restructuring over the next six months, S&P said.
The ratings reflect Altegrity’s diminished competitive position in a highly fragmented industry with low barriers to entry, where intense price competition continues to pressure revenue growth, leading to margin compression, the agency said.
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