S&P downgrades Decade, Ten-X

S&P said it lowered its corporate credit ratings on Decade Holding Co. Inc. and Ten-X LLC to B- from B. The outlook is negative.

At the same time, the agency lowered its issue-level rating on the company's first-lien credit facility to B- from B. The 3 recovery rating is unchanged, indicating an expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a default.

The agency also lowered its issue-level rating on the company's second-lien term loan to CCC from CCC+. The 6 recovery rating is unchanged, indicating an expectation for negligible recovery (0%-10%; rounded estimate 0%).

S&P said the downgrade reflects Decade's substantial revenue declines since the second quarter of 2017, resulting in poor EBITDA generation and higher-than-expected leverage above 9x in 2017.

“The poor revenue performance is due to weaker-than-expected market volumes in distressed real estate, weaker-than-expected operating performance in both the residential and commercial segments and negative impacts from unanticipated weather events in the second half of 2017,” the agency said in a news release.

© 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.