S&P downgrades Belcan

S&P said it lowered the issuer credit rating on Propulsion Acquisition LLC (Belcan) to B- from B.

The agency also said it lowered the rating on the company's $535 million first-lien term loan due 2021 to B- from B. The 4 recovery rating is unchanged.

The credit metrics continue to underperform expectations with its debt-to-EBITDA ratio at more than 10x in 2018, S&P said.

Although the agency said it expects leverage to improve, it will likely remain high due to additional acquisitions.

The stable outlook reflects a belief that debt-to-EBITDA will improve in 2019, but will remain weak due to continued debt-financed acquisitions and the associated transaction costs that will affect earnings, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.