S&P downgrades Winebow

S&P said it lowered its corporate credit rating on Winebow Group LLC to CCC+ from B-.

The outlook is negative.

At the same time, the agency lowered the rating on the company's $230 million first-lien term loan to CCC+ from B-. The recovery rating remains at 3, indicating an expectation for a meaningful (50%-70%; rounded estimate 55%) recovery in the event of payment default.

S&P also lowered the rating on the company's $130 million second-lien term loan to CCC- from CCC. The recovery rating remains at 6, indicating negligible (0%-10%; rounded estimate 0%) recovery.

“The downgrade reflects continued operational underperformance and our expectation that leverage will remain around 10x over the next year and the company will not be able to meaningfully improve its cash flow generation, which could hinder its ability to refinance its revolving credit facility before July 1, 2019, when it becomes current,” the agency said in a news release.

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