S&P: Audio Visual view negative

Standard & Poor's said it revised the outlook on Audio Visual Services Corp. to negative from stable and affirmed the B corporate credit rating.

S&P said the outlook revision reflects the deterioration of credit metrics and cushion with bank covenants.

The rating reflects the company's cash flow concentration in the hotel meetings and conferences business, high customer concentration, commissions paid to venue-hosting hotels, and high debt leverage and weakened cash flow following the company's leveraged acquisition by Kelso & Co., the agency noted.

The company's good competitive position and its increased scale from recent service contract additions partially offset these factors, S&P said.

For the 12 months ended March 31, lease-adjusted total debt-to-EBITDA ratio was 4 times.

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