S&P downgrades 4L Technologies

S&P said it lowered the corporate credit rating on 4L Technologies Inc. to B from B+.

The agency also said it lowered the rating on the company's $760 million senior secured term loan due 2020 and $65 million revolving credit facility due 2019 to B from B+.

The recovery rating remains at 3, indicating 50% to 70% expected default recovery.

The outlook is stable.

The downgrades reflect weak operating performance through the first half of 2016, mostly related to declining revenues in the company’s imaging segment, S&P said.

The downgrades also consider an expectation for flat or slightly improving revenue performance and leverage remaining at about 5x compared to a prior estimate for stronger operating growth and lower leverage, the agency explained.

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