S&P revises Jason view to negative

S&P said it revised its outlook on Jason 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 the company's first-lien credit facilities. The 3 recovery rating is unchanged, indicating an expectation for meaningful (50%-70%; higher end of the range) recovery in the event of a default.

In addition, S&P affirmed its CCC+ issue-level rating on the company's second-lien term loan. The 6 recovery rating is unchanged, indicating an expectation for negligible (0%-10%) recovery in the event of a default.

"The negative outlook on Jason indicates that we may lower our ratings over the next 12 months if the company is unable to improve its operating performance and reduce its debt leverage from current levels," S&P credit analyst Steven McDonald said in a news release.

"A failure to materially improve its performance could occur due to further end-market deterioration, or missteps in the execution of restructuring initiatives, any of which would undermine the company's near-term ability to deleverage."

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