S&P cuts RGIS, debt to CCC+

S&P said it lowered its corporate credit rating on RGIS Holdings LLC to CCC+ from B-.

The outlook is developing.

At the same time, the agency downgraded its issue-level rating on the company's senior secured debt to CCC+ from B-. The 4 recovery rating remains unchanged, indicating an expectation for average (30% to 50%, upper half of the range) recovery in the event of a payment default.

S&P estimates that RGIS had roughly $500 million in reported debt outstanding as of Sept. 30.

"The downgrade reflects increased refinancing risk as RGIS approaches its $500 million term loan maturity in October, especially given that it provides services directly to brick and mortar retailers, a sector that is generally out of favor with investors given weak store traffic trends and share gains by e-commerce based retailers," S&P credit analyst Brennan Clark said in a news release.

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