S&P downgrades Aquilex

Standard & Poor's said it lowered the corporate credit rating on Aquilex Holdings LLC to CCC+ from B, along with its issue-level ratings by two notches.

The recovery ratings remain unchanged at 1 on the senior secured credit facilities and 5 on the senior unsecured notes.

The outlook is negative, reflecting the potential for a downgrade if Aquilex is unable to negotiate adequate covenant relief for the upcoming quarterly periods and improve operating performance, S&P said.

Aquilex's thin margin of headroom under its financial covenants at the end of the second quarter could trigger a financial covenant violation in the second half of 2011, the agency said.

The company's ability to maintain sufficient liquidity is key to the rating, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.