S&P affirms Transworld Systems, cuts notes

S&P said it affirmed its CCC corporate credit rating on Transworld Systems Inc. and removed the ratings from CreditWatch, where S&P originally placed them with positive implications on Dec. 13, 2016. The outlook is developing.

In addition, S&P lowered the issue rating on the company’s senior secured notes to CCC- from CCC and revised the recovery rating on the notes to 5 from 4. The 5 recovery rating indicates an expectation for modest recovery (10%-30%; rounded estimate: 15%) in the event of a payment default.

“The rating actions reflect reduced revenue visibility due to uncertainty about receipt of the DoE debt collection services contract,” said S&P credit analyst William Savage in a news release.

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