S&P pares Power Stop

S&P said it lowered its ratings for Power Stop LLC and its senior secured credit facilities to B- from B.

“We expect credit metrics and cash flows will remain weak, and could weaken further over the next 12 months. EBITDA margins compressed in 2022 and we now expect leverage to be over 7.5x in 2022 compared to our previous expectations of around 5x. We also anticipate FOCF in 2022 will remain weak due to the company's reduced profitability and elevated working capital, though working capital could improve in the back half of the year,” the agency said in a press release.

The outlook is negative.

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