S&P changes ECI Holdco to negative

S&P said it revised its outlook on ECI Holdco Inc. to negative from stable and affirmed its B corporate credit rating.

At the same time, the agency affirmed its B issue-level rating on ECI subsidiary Electrical Components International Inc.'s senior secured credit facilities. The 3 recovery rating is unchanged, indicating an expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a payment default.

"The outlook revision reflects the potential that we may downgrade ECI if its operating performance does not improve such that it sustains leverage of more than 6.5x and a funds from operations (FFO)-to-debt ratio of well below 12%, or if the company pursues additional debt-financed acquisitions that prevent it from deleveraging," S&P credit analyst Christopher Corey said in a news release.

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