S&P lowers Ahern Rentals

S&P said it lowered Ahern Rentals Inc.’s issuer rating to CCC from CCC+ and its senior secured notes due 2023 to CCC- from CCC. The agency also withdrew the preliminary CCC+ rating on Ahern’s planned $550 million second-priority senior secured notes due 2026 because it withdrew the refinancing transaction.

S&P said it expects the asset-based lending facility will go current in mid-February of 2022 limiting the company’s opportunities for refinancing.

“At that point, uses of liquidity would significantly exceed sources because our analysis treats current debt as a use of liquidity. This increases the risk that the company may not be able to complete a successful refinancing and leaves the company dependent on receptive credit markets to improve its liquidity and meet its debt obligations,” S&P said in a press release.

The agency noted that only $11 million was available on the ABL facility at June 30.

The outlook is developing.

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