S&P cuts Renfro

S&P said it lowered all its ratings on Renfro Corp. to CCC from CCC+.

“The downgrade reflects refinancing risk and weak liquidity as a result of near-term debt maturities and continued operating underperformance. Renfro's asset-based lending (ABL) revolving credit facility matures in February 2021, approximately 12 months from now, and its $220 million term loan ($143 million currently outstanding) matures shortly afterward on March 31, 2021. Given Renfro's operating underperformance over the past several years (EBITDA is almost 40% lower than it was five years ago), its very high leverage, and minimal cash flow generation, we believe it will be challenging for the company to successfully refinance its debt before it matures,” said S&P in a press release.

The outlook is negative.

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