S&P downgrades RGIS

S&P said it lowered its corporate credit rating on RGIS Holdings to B- from B. The outlook is negative.

At the same time, S&P lowered the issue-level rating on the company’s senior secured debt to B- from B. The 4 recovery rating remains unchanged, indicating an expectation for average (30% to 50%, upper half of the range) recovery in the event of a payment default.

“Our downgrade reflects RGIS’ heightened refinancing risk, with a large upcoming debt maturity and volatility in the credit markets, particularly after the recent Brexit vote. This risk is amplified by the company’s continuing poor operating performance and weak credit metrics over the last several years,” S&P said in a news release.

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