S&P lowers Blucora

S&P said it lowered Blucora Inc.’s ratings to BB- from BB. The recovery rating on the senior debt remains 4, indicating average recovery (30%-50%; rounded estimate 45%) in default.

“The downgrade is based on our expectation of the company's overall modest market position, and that leverage will remain between 4x-5x in 2022. The rise in leverage stems from weaker-than-expected operating performance and no benefit from cash netting due to its lower business position. In our view, Blucora's modest market position in a highly competitive tax software and wealth management markets and operating performance that is weaker than peers weigh on its business position,” the agency said in a press release.

The outlook is stable.

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