S&P views Dodge Construction negatively

S&P said it revised its outlook for Dodge Construction Network LLC to negative from stable and affirmed the B- ratings on the company and its first-lien credit facility and CCC rating on the second-lien facility. The recovery ratings of 3 and 6 on the loans, respectively, are unchanged.

“The outlook revision reflects our expectation Dodge's liquidity position will steadily decline due to rising interest expense and revenue weakness, limiting its room for operational error. As of Sept. 30, 2022, Dodge's total liquidity sources declined since the close of its recapitalization transaction in early 2022). This was driven by organic revenue contraction, because of rising small to midsize business (SMB) customer churn and more working capital due to slowing collections and accelerating payables and modest debt reduction,” S&P said in a press release.

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