S&P drops Coinmach

Standard and Poor's said that it lowered its ratings on Coinmach Service Corp., including the long-term corporate credit rating to B- from B.

The outlook is negative.

"The ratings on Coinmach reflect its very highly leveraged financial profile and near-term potential for declining liquidity due to tightening financial covenants and negative free cash flows, despite a currently ample cash balance," said S&P credit analyst Christopher Johnson.

"The negative outlook reflects its concerns about the company's ability to maintain compliance with its financial covenants over the near term, and the company's continued negative free cash flow generation."

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