S&P lowers DirectBuy

Standard & Poor's said it lowered its corporate credit rating on DirectBuy Holdings Inc. to CCC from B.

The outlook is negative.

At the same time, the agency said it lowered the issue-level rating on the company's $335 million of senior secured notes to CCC- and revised the recovery rating to 5 from 3.

"The rating actions follow the persistent decline in the DirectBuy's membership base, and its expectation that this trend will continue because of the continued weak U.S. economy and the company's legal issues over its sales practices," explained S&P credit analyst Andy Sookram.

As a result, the agency said it sees its operating performance and financial flexibility weakening from current levels.

© 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.