S&P lowers Rexair outlook to negative

Standard & Poor's said it revised its ratings outlook on Rexair LLC to negative from stable.

At the same time, the agency said it affirmed its B corporate credit and other ratings on the company.

According to S&P, the outlook revision reflects concern with the company's weakened operating trends and tight covenant cushion.

For the 12 months ended March 31, net sales grew by 1.4% because of growth in international markets, but EBITDA fell by 4% because of unfavorable manufacturing overhead and higher promotional expenses, S&P noted.

The rating on Rexair reflects the risks of direct-sales distribution and the discretionary nature of the company's products, its narrow business focus, small size and highly leveraged financial profile, S&P said.

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