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S&P cuts Array, first-lien loan
S&P said it downgraded Array Canada Inc. to CCC+ from B on deteriorating cash flows and higher leverage.
S&P also lowered its issue-level rating on the company's first-lien facility to CCC+ from B. The 4 recovery rating on the debt is unchanged.
The outlook is negative.
The agency said Array’s revenue and EBITDA margins continue to face pressure, reflecting declines in the prestige and mass color cosmetics market in the United States.
“As a result, deteriorating cash flows and higher-than-expected borrowings on the revolver have led to elevated leverage; we forecast Array's leverage at 8.0x-8.5x for the next 12 months compared with our previous expectation of 6.0x-6.5x,” the agency said in a news release.
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