S&P cuts RGIS

Standard & Poor's said it lowered its ratings, including the corporate credit rating, on RGIS Inventory Specialists to B- from B+, removing them from CreditWatch, where they were placed with negative implications on March 23.

In addition, S&P said it has assigned a B- corporate credit rating to RGIS' parent company RGIS Holdings LLC. The outlook on both issuers is positive.

At the same time, S&P said it assigned its B- bank loan rating, the same as the corporate credit rating on RGIS, to the holding company's planned $500 million senior secured term loan B and the $75 million revolving credit facility.

The agency noted that the proceeds of the bank facility will be used to finance the retirement of the existing bank loan and to fund the LBO of the company by an affiliate of The Blackstone Group.

According to S&P, the ratings on RGIS reflect its highly leveraged capital structure, weak cash flow protection and a business position that we believe is vulnerable to increased competition while these risks are only partially offset by the company's leading industry position and long-standing relationships with most of its largest customers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.