S&P: RCS Capital view to negative

Standard & Poor’s said it revised the outlook on RCS Capital Corp. to negative from stable.

The agency also said it affirmed the company’s B issuer credit rating, B rating on the company’s first-lien term loan and revolving credit facility and CCC+ rating on the company’s second-lien term loan.

The outlook revision reflects the significant deterioration in the company’s operating results during the first half of 2015, S&P said.

While the company’s strategic initiatives are seen as supportive of the company’s business profile in the medium- to long-run, its earnings decline could indicate some structural challenges in its retail advice business, the agency said.

If the company’s business profile weakens and its financial performance further deteriorates, the continued decline in earnings could put the company at risk of breaching loan covenants, S&P said.

The negative outlook reflects the significant deterioration in the company’s financial performance on the first half of the year versus expectations, the agency added.

© 2015 Prospect News.
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