Fitch revises FinThrive view to negative

Fitch Ratings said it changed its outlook for FinThrive Software Intermediate Holdings, Inc. to negative from stable. The agency also affirmed the company’s long-term issuer default rating at B-, its senior secured first-lien rating at B+/RR2 and the senior secured second-lien rating at CCC/RR6.

“The ratings and revision in outlook reflect FCF generation which is likely to remain constrained due to a heavy interest burden, slower than expected EBITDA growth, delays in the company's efforts to curb extraordinary spend and capex spend and working capital outflows which has led to decline in liquidity balances as compared to Fitch's prior expectations,” the agency said in a press release.

Fitch warned, “While liquidity is still sufficient to absorb moderate pressures, negative ratings action may be warranted if extraordinary spend and capital intensity are not reduced sufficiently to produce positive FCF.”

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