S&P: QTC outlook positive

Standard & Poor's said it revised the outlook on QTC Management Inc. to positive from negative and affirmed its B corporate credit rating.

"The action follows the recent signing of an amendment that gives the company relief from a near-term significant tightening of covenants, without increasing pricing on the company's credit facility," S&P analyst Alain Pelanne said in a statement.

The rating reflects the company's vulnerabilities tied to its narrow business focus, heavy reliance on three customers and its aggressive financial risk profile, the agency said.

These factors partly are offset by its established positions with key government agencies, strong margins and cash flows, and scalable business model, the agency noted.

S&P said it expects QTC to be leveraged at less than 4x on a lease-adjusted basis, immediately after repayments of debt associated with the recent amendment.

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