S&P changes Outerstuff view

S&P said it affirmed its B corporate credit rating on Outerstuff LLC and revised the outlook to negative from stable.

At the same time, the agency affirmed the BB issue-level rating on the company's $100 million asset-based lending facility maturing in 2019. The recovery rating remains 1+, reflecting an expectation of 100% recovery in the event of a payment default.

In addition, the agency affirmed the B issue-level rating on the company's $155 million first-lien term loan facility maturing in 2021. The recovery rating remains 3, reflecting an expectation of meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a payment default.

“The outlook revision to negative from stable primarily reflects the nearing maturity of Outerstuff's $100 million ABL in June 2019,” S&P said in a news release.

“Although we believe no borrowings are outstanding on the line, Outerstuff typically uses the facility to fund seasonal working capital investment and for other general corporate purposes.”

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