S&P lowers Erickson view to negative

Standard & Poor’s said it revised the outlook on Erickson Inc. to negative from stable and affirmed its B corporate credit rating.

The agency also said it affirmed the B rating on the company’s senior secured notes due 2020. The 3 recovery rating remains unchanged, indicating 50% to 70% expected default recovery.

The outlook revision reflects Erickson’s weaker-than-expected credit metrics and tighter-than-expected liquidity, which are largely due to delays in the company’s completion of its acquisition of Air Amazonia Servicos Aeronauticos Ltda. last year, S&P said.

The ratings reflect the company’s limited end-market diversity and participation in a relatively small niche market, where demand can be somewhat unpredictable and competitive pressures remain significant, the agency said.

The ratings also consider the company’s weak business risk profile and highly leveraged financial risk profile, S&P said.

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