S&P cuts Carey International outlook to negative

Standard & Poor's said it affirmed Carey International Inc.'s B- corporate credit rating and revised the outlook to negative from stable to reflect Carey's weaker-than-expected financial performance over the past year and the potential for a rating downgrade if performance does not improve in the next few quarters or if covenant issues arise and limit the company's access to bank lines.

S&P said the ratings on Carey reflect the limousine company's highly leveraged capital structure and exposure to cyclical and competitive end markets with limited barriers to entry. Helping to mitigate these challenges are a fairly flexible cost structure and significant market share in a fragmented industry.

Debt to EBITDA is about 6x.

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