S&P downs Integrated Electrical

Standard & Poor's said it lowered its corporate credit rating on Integrated Electrical Services Inc. (IES) to CCC- from B- and also lowered the subordinated debt rating on the company to C from CCC.

The ratings remain on CreditWatch with negative implications, where they were placed on May 19, S&P added.

The agency said the downgrade reflects its heightened concerns that the company may undergo a financial restructuring that would disadvantage bondholders, noting IES said on Nov. 2 it hired financial advisor Gordian Group LLC to assist the company in developing strategies to delever its balance sheet.

Given IES' vulnerable financial risk profile, including the company's onerous debt burden and limited liquidity, it is possible the company could pursue a coercive exchange or Chapter 11 filing, S&P added.

© 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.