S&P upgrades Lexmark

S&P said it raised all of the ratings on Lexmark International II LLC and Lexmark International Inc., including its issuer credit rating, to CCC+ from CCC.

Lexmark International II has received a commitment letter from lenders providing a fully committed term loan due 2023 to refinance its $341 million note principal due in March 2020, the agency explained.

S&P said it expects Lexmark to execute this agreement soon, alleviating its immediate liquidity constraints.

But Lexmark will still need to manage rising debt amortization payments that will pressure liquidity over the next few years, the agency said.

The stable outlook reflects an expectation that Lexmark will have sufficient liquidity to meet its financial obligations over the next 12 months, despite rising debt amortization payments, S&P said.

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