S&P cuts Aruba Investments view to negative

S&P said it affirmed its B- corporate credit rating on Aruba Investments Inc. and revised the outlook to negative from stable.

At the same time, S&P said it affirmed its B issue-level rating on the company's secured debt, with a 2 recovery rating. The 2 recovery rating indicates an expectation of substantial (70% to 90%; rounded estimate: 70%) recovery in the event of a payment default.

S&P also affirmed its CCC+ issue-level rating on the company's unsecured debt, with a 5 recovery rating. The 5 recovery rating indicates an expectation of modest (10% to 30%; rounded estimate: 20%) recovery in the event of a payment default.

“We revised our rating outlook on Aruba to negative from stable based on our assessment of its very high debt leverage, and the absence of any margin for operating underperformance relative to our 2018 expectations before we would consider debt leverage unstainable,” S&P said in a news release.

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