S&P cuts First American Payment

S&P said it lowered its issuer credit rating on First American Payment Systems LP to B- from B. The outlook is negative.

S&P also lowered its issue-level rating on the company's secured term loan and revolving credit facility to B- from B; the recovery rating remains 3.

“The downgrade reflects our view that a sharp reduction in consumer discretionary spending from state lockdowns and quarantine status in response to Covid-19 pandemic will lead to severe revenue and EBITDA declines and leverage well exceeding current level over the coming year. We estimate that company's leverage amounted to about 5.2x as of Dec. 31, 2019,” S&P said in a news release.

© 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.