S&P cuts Proserv, revolver, loans

S&P said it lowered its long-term corporate credit rating on Proserv Group Inc. to CCC- from CCC+.

The outlook is negative.

At the same time, the agency lowered the issue-level rating on the company's $60 million revolving credit facility and $365 million first-lien term loan to CCC- from CCC+. The 4 recovery rating is unchanged, indicating an expectation of 30%-50% (rounded estimate: 35%) recovery in the event of a payment default.

S&P also lowered the long-term issue rating on the company's $115 million second-lien term loan due 2022 to C from CCC-. The recovery rating is unchanged at 6, indicating an expectation of negligible (0%) recovery.

“The downgrade reflects our view that a liquidity crisis or distressed exchange appears inevitable in the next six months in the absence of significantly favorable changes in Proserv's circumstances, such as shareholder support,” the agency said in a news release.

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