S&P cuts CHC to negative

Standard & Poor's said it revised the outlook on 6922767 Holdings Sarl and its related entities, collectively CHC Helicopter Corp., to negative from stable.

The agency also said it affirmed the B+ long-term corporate credit rating on the company.

The outlook revision reflects a concern about CHC Helicopter's ability to deleverage to the 7.5x target for the ratings in the near term, owing to weakened profit margins stemming from operational challenges, S&P said.

But some of the operational weaknesses could be temporary, the agency said, and the outlook for demand for the company's services is favorable. So, for now this higher level can be tolerated, S&P said.

The ratings reflect the highly leveraged financial risk profile that substantially offsets the benefits of the company's favorable business characteristics, the agency said.

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