S&P rates Neebo notes CCC

Standard & Poor's said it assigned its CCC+ corporate credit rating to Neebo Inc. The outlook is stable.

At the same time, the agency said it assigned a CCC issue-level rating to the company's $100 million senior secured notes. The recovery rating on the notes is 5, indicating the belief that the lenders could expect modest recovery in the event of a payment default or bankruptcy.

"The ratings on Neebo reflect our forecast for the company's credit ratios to remain weak and our view that its liquidity profile is weak," said S&P credit analyst Brian Milligan in a news release.

"It also reflects our view that its on-campus bookstore presence is much weaker than competitors, and its off-campus bookstores are increasingly vulnerable to online discount retailers."

© 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.