Fitch lowers Alpha Group

Fitch Ratings said it downgraded Alpha Group Sarl's long-term issuer default rating to B- from B. The outlook remains negative. Fitch also downgraded its senior secured debt rating to B+/RR2 from BB-/RR2. Alpha owns A&O, a youth travel hotel and hostel operator.

“The downgrade reflects A&O's impaired financial flexibility as we expect the company will use most of its available liquidity headroom to close a funding gap and cover operating losses following a collapse in group travel related to the Covid-19 pandemic. Once the current crisis abates, A&O has the potential to capitalize on supportive market trends and grow into a Europe-wide brand,” said Fitch in a press release.

The negative outlook reflects the credit downside risks arising from A&O's fragile liquidity and weak free cash flows, constrained financial flexibility and persistently elevated leverage, which could make the group's capital structure increasingly unsustainable beyond 2020, if the rebound from the Covid-19 crisis is weaker than expected.

Moody’s downgrades ASM

Moody’s Investors Service said it downgraded SMG US Midco 2, Inc.’s (ASM Global) ratings, including its corporate family rating to B3 from B1, probability of default rating to B3-PD from B1-PD and first-lien term loan rating to B3 from B1. Moody’s also downgraded the instrument ratings on SMG Holdings, LLC’s revolver to B3 from B1. The agency changed the outlook to negative.

The rating downgrades reflect Moody’s expectation of significant contraction in ASM’s earnings and cash generation in 2020 due to increased cancellations of events, shows and business conferences amid heightened Covid-19 risk. Moody’s said it acknowledges the company’s strong cash position of over $200 million and availability under its $96 million revolving credit facility, which renders adequate liquidity through the current disruptive period.

The negative outlook reflects further downside risk to the current earnings and cash flow forecast.

Moody's trims Bloomin' Brand

Moody's Investors Service said it downgraded Bloomin' Brands, Inc.'s corporate family rating to Ba3 from Ba2, probability of default rating to B1-PD from Ba3-PD, $1 billion senior secured revolver to Ba2 from Ba1 and $500 million senior secured term loan to Ba2 from Ba1. Also, Bloomin' Brands speculative grade liquidity rating was downgraded to SGL-3 from SGL-2. All long term ratings have been placed under review for further downgrade.

"The downgrade reflects our expectation for a material deterioration in both earnings and credit metrics following the closure of all in-store dining across Bloomin' Brand's entire restaurant base due to efforts to contain the spread of the coronavirus including recommendations from federal, state and local governments," said Bill Fahy, a Moody's senior credit officer, in a press release.

In response to these operating challenges and to strengthen liquidity, Bloomin' Brands drew down substantially all of its $1 billion bank revolver while also suspending its dividend, share repurchases and all discretionary capital spending. "While many restaurants are still able to continue to provide take-out, curbside pick-up and delivery, total restaurant sales will still be substantially below normal operating levels for the typical casual dining restaurant," said Fahy.

Moody's downgrades Boyd Gaming

Moody's Investors Service said it downgraded Boyd Gaming Corp.'s corporate family rating to B2 from B1 and probability of default rating to B2-PD from B1-PD. The agency downgraded the company's senior secured revolver and term loans to Ba3 from Ba2, and the company's senior unsecured notes were downgraded to Caa1 from B3. The company's speculative grade liquidity rating was downgraded to SGL-3 from SGL-2. The outlook is negative.

The downgrade is in response to the disruption in casino visitation resulting from efforts to contain the spread of the coronavirus, including recommendations from federal, state and local governments to avoid gatherings and avoid non-essential travel.

These efforts include mandates to close casinos temporarily. The downgrade also reflects the negative effect on consumer income and wealth stemming from job losses and asset price declines, which will diminish discretionary resources to spend at casinos once this crisis subsides, the agency said.

Moody's downgrades Brinker

Moody's Investors Service said it downgraded Brinker International, Inc.'s corporate family rating to Ba3 from Ba1, probability of default rating to Ba3-PD from Ba1-PD, guaranteed senior unsecured notes to B2 from Baa3 and senior unsecured non-guaranteed notes to B2 from Ba1. Also, Brinker's speculative grade liquidity rating was downgraded to SGL-4 from SGL-2. All ratings remain under review for further downgrade.

"The downgrade reflects the expectation for a severe deterioration in both earnings and credit metrics that are driven by the closure of in-store dining across Brinker's entire restaurant base due to efforts to contain the spread of the coronavirus including recommendations from federal, state and local governments," said Bill Fahy, a Moody's senior credit officer, in a press release.

"While many restaurants are still able to continue to provide take-out, curbside pick-up and delivery, total restaurant sales will still be substantially below normal operating levels for the typical casual dining restaurant," Fahy said.

S&P cuts Carrols Restaurant

S&P said it lowered its ratings on Carrols Restaurant Group Inc. and its senior secured credit facilities to B- from B and placed them on CreditWatch with negative implications. The recovery rating remains 3.

“We expect the coronavirus pandemic to cause a significant shock to Carrols Restaurant Group Inc.'s operations this year due to anticipated sharp demand declines in the near term,” said S&P in a press release. The agency described cash flow and profitability prospects for the company as “grim under current conditions.”

Moody's cuts CBAC Gaming

Moody's Investors Service said it downgraded CBAC Gaming, LLC's corporate family rating to Caa2 from Caa1 and probability of default rating to Caa2-PD from Caa1-PD. The agency cut the company's senior secured revolver and term loan to Caa2 from Caa1. The outlook is negative.

The downgrade of CBAC is in response to the disruption in casino visitation resulting from efforts to contain the spread of the coronavirus, including recommendations from federal, state and local governments to avoid gatherings and avoid non-essential travel.

These efforts include mandates to close casinos temporarily. The downgrade also reflects the negative effect on consumer income and wealth stemming from job losses and asset price declines, which will diminish discretionary resources to spend at casinos once this crisis subsides, the agency said.

Moody’s cuts Cenovus

Moody’s Investors Service said it downgraded Cenovus Energy Inc.’s corporate family rating to Ba2 from Ba1, probability of default rating to Ba2-PD from Ba1-PD and senior unsecured notes rating to Ba2 from Ba1. The speculative grade liquidity rating was downgraded to SGL-2 from SGL-1. The agency changed the outlook to negative from positive.

"The downgrade reflects very low cash flow generation and weak credit metrics through 2020," said Paresh Chari Moody’s analyst, in a press release. "Cenovus has good liquidity to weather this period of low prices, but its credit metrics will be durably weakened by this period of low oil prices."

The negative outlook reflects Moody’s expectation retained cash flow to debt could be below 15% in 2021.

Fitch cuts Cenovus Energy

Fitch Ratings said it downgraded Cenovus Energy Inc.’s long-term issuer default rating to BB+ from BBB- and senior unsecured rating to BB+/RR4 from BBB-. The outlook is negative.

The downgrades reflect the effect of sharply lower oil prices on the company’s leverage metrics, which led Fitch to revise its price deck lower. Cenovus’ debt/EBITDA leverage metrics now look weak for the rating category under Fitch’s revised price deck, particularly in 2020 and 2021.

The downgrades also reflect the higher variance of Cenovus’ forecast debt/EBITDA leverage in the downcycle when compared to most investment-grade exploration and production, despite the progress the company has made to date in reducing balance sheet debt and taking fixed costs out of its system, the agency said.

Fitch cuts Centurion Pipeline

Fitch Ratings said it downgraded Centurion Pipeline Co. LLC's long-term issuer default rating to BB- from BB. Also, Fitch downgraded the senior secured term loan and revolver rating to BB/RR1 from BB+/RR1. The recovery rating of RR1 reflects Fitch's expectations of an outstanding recovery in the range of 91% to 100% if there is an event of default. The agency also revised the outlook to negative from stable.

The downgrade to Centurion reflects the negative rating action at Centurion's primary counterparty, Occidental Petroleum Corp. Fitch had previously written that a substantial credit quality deterioration at Occidental could lead to a downgrade at Centurion, the agency said. Fitch recently downgraded Occidental

The negative outlook reflects Fitch's concerns around near term challenges in a weak oil price environment and its continued effect on producer activity.

Moody’s cuts CityCenter Holdings

Moody’s Investors Service said it downgraded CityCenter Holdings, LLC’s corporate family rating to B2 from B1 and probability of default rating to B2-PD from B1-PD. The agency downgraded the company’s senior secured revolver and term loan B to B2 from B1. The company’s speculative grade liquidity rating was downgraded to SGL-2 from SGL-1. The outlook is negative.

The downgrade is in response to the disruption in casino visitation resulting from efforts to contain the spread of the coronavirus including recommendations from federal, state and local governments to avoid gatherings and avoid non-essential travel. These efforts include mandates to close casinos temporarily.

The downgrade also reflects the negative effect on consumer income and wealth stemming from job losses and asset price declines, which will diminish discretionary resources to spend at casinos once this crisis subsides, Moody’s said.

S&P cuts Comstock Resources

S&P said it lowered the ratings for Comstock Resources Inc. and its unsecured debt to CCC+ from B.

“We expect Comstock's already tight liquidity position will be vulnerable to upcoming borrowing base redetermination cycles. With $1.25 billion (83%) of its $1.5 billion RBL elected commitment drawn as of year-end, we believe redetermination risk has markedly increased as economic and business conditions have deteriorated considerably along with oil and gas prices,” said S&P in a press release.

The outlook is stable.

Moody’s cuts Conduent

Moody’s Investors Service said it downgraded Conduent Business Services, LLC’s corporate family rating to B1 from Ba3 and its probability of default rating to B1-PD from Ba3-PD. Moody’s also downgraded its rating on Conduent Business’ (as well as Affiliated Computer Services International BV’s ) senior secured credit facilities to B1 from Ba3 and the rating on the issuer’s unsecured notes to B3 from B2.

The agency revised the outlook to negative from stable. The speculative grade liquidity rating remains SGL-2.

The downgrade reflects sustained weakness in the company’s operating performance, including ongoing sales declines and modest free cash flow generation, which Moody’s expects to persist over the coming year, as well as a significant erosion in the company’s equity cushion. Additionally, uncertainties concerning the effect of the coronavirus outbreak cast further pressure on Conduent’s credit quality. Conduent Business is a wholly owned subsidiary of Conduent Inc.

The negative outlook reflects Moody’s forecast Conduent’s sales will decline by 8% in 2020 due to ongoing pricing pressure and softness in new business signings.

S&P cuts Conduent

S&P said it downgraded Conduent Inc.’s first-lien issue-level rating to BB- from BB+ and senior unsecured issue-level rating to B from BB-. The also also downgraded the company’s rating to B+ from BB.

“The downgrade reflects our view that Conduent Inc. will face heightened operational and execution risk amid stiff competition, high business investment needs, and the difficult economic environment over the next 12-18 months. We now expect mid- to high-single-digit organic revenue declines, market share losses, and flat margins (midpoint of guidance) in 2020, as the company executes on its business improvement and investment plan,” S&P said in a press release.

The outlook is negative.

S&P cuts Crackle

S&P said it downgraded Crackle Intermediate Corp. (SnapAV) and its secured term loan and revolving credit facility to B- from B; the recovery rating remains 3.

“The downgrade and negative outlook reflect 2019 leverage around 9x, higher than expected due to investments in growth that did not materialize, and our uncertainty about how severely the coming macroeconomic downturn will affect SnapAV's operating performance,” said S&P in a press release.

The outlook is negative.

Moody’s cuts Form Technologies

Moody’s Investors Service said it downgraded its ratings for Form Technologies LLC, including the corporate family rating to Caa2 from B3 and probability of default rating to Caa2-PD from B3-PD. Concurrently, Moody’s downgraded the company’s first-lien senior secured revolving credit facility and term loan to Caa1 from B2 and its second-lien senior secured term loan to Caa3 from Caa2. The outlook is negative.

"The downgrades reflect our expectation of weakening market conditions in the company’s automotive and energy end-markets, and more broadly a weakening macroeconomic environment which will be exacerbated by the current coronavirus crisis," said Gigi Adamo, a Moody’s vice president, in a press release.

"The ensuing reduction in revenue, earnings and cash flow will constrain the company’s liquidity profile and impose incremental balance sheet strain such that its ability to successfully refinance upcoming debt maturities in the absence of new equity and/or a prospective distressed exchange is rendered more questionable," added Adamo.

Moody's cuts FS Energy fund

Moody's Investors Service said it downgraded FS Energy and Power Fund's corporate family and long-term senior secured debt ratings to Ba3 from Ba2. Following the downgrade, the ratings were placed on review for downgrade.

The downgrade reflects the heightened risk to the company's financial strength and performance from the recent plunge in oil prices and Moody's view oil prices will remain lower than previously expected in 2020. Oil prices have declined markedly to below $30 per barrel driven by an acute oil demand dislocation caused by the coronavirus and the lack of production cuts by the OPEC+ countries.

Moody's cuts Gateway Casinos

Moody's Investors Service said it downgraded Gateway Casinos & Entertainment Ltd.'s corporate family rating to Caa2 from B3, probability of default rating to Caa2-PD from B3-PD, senior secured first-lien ratings to B2 from Ba3 and senior secured second-lien notes rating to Caa3 from Caa1. The outlook was changed to negative from stable.

Moody's sees an increased risk of default associated with uncertainty around the repayment or refinancing of its $150 million PIK Holdco debt due April 2022 and a material reduction in cash flows due to the coronavirus outbreak.

This action follows government directives to suspend gaming operations in British Columbia and Ontario due to the coronavirus outbreak. Declining patronage and challenging economic conditions will pressure Gateway's cash flows through 2020 and lead to the postponement of key growth capital investments. Revenue loss in 2020 will drive a steep decline in EBITDA generation and a sharp increase in leverage towards 15x in 2020, the agency said.

Moody's cuts GK Holdings

Moody's Investors Service said it downgraded its ratings for GK Holdings, Inc. (Global Knowledge), including the company's corporate family rating to Ca from Caa2 and probability of default rating to Ca-PD from Caa2-PD, along with its senior secured first-lien bank credit facilities to Caa3 from Caa1 and senior secured second-lien term loan to C from Caa3. The outlook remains negative.

"The downgrades reflect heightened refinancing risk given upcoming debt maturities, continued deterioration in operating results, a very levered balance sheet and weak liquidity," said Shirley Singh, Moody's lead analyst for Global Knowledge in a press release.

"Growing macroeconomic weakness will further reduce demand volumes, which in turn will pressure earnings and result in a much more cash absorptive profile over the course of 2020, increasing the risk of default," added Singh.

S&P cuts K&N Parent

S&P said it downgraded K&N Parent Inc.’s first-lien term loan and revolver to B- from B and the second-lien term loan to CCC- from CCC. The agency also downgraded the company to CCC+ from B-. S&P placed the ratings on CreditWatch with negative implications.

“The downgrade reflects our view that K&N's operating prospects are substantially worsened by the coronavirus pandemic following a weak 2019 marked by ongoing product mix and cost management challenges.

Margins and cash flow have been burdened by a number of company initiatives. These include the launch of new products, geographic growth initiatives, and a major investment to move operations from California to Texas,” said S&P in a press release.

The CreditWatch placement reflects at least a 50% chance S&P could lower the ratings at least by one notch due to a potential breach of its credit agreement requirement the sponsor adds additional capital of $12 million by March 31.

Moody’s lowers Kosmos Energy

Moody’s Investors Service said it downgraded Kosmos Energy Ltd.’s corporate family rating to B2 from B1, probability of default rating to B2-PD from B1-PD and senior unsecured notes to Caa1 from B2. The agency downgraded the speculative grade liquidity rating to SGL-3 from SGL-2. Moody’s also changed the outlook to negative from positive.

"Sharply lower commodity prices will challenge Kosmos Energy’ profitability and financial flexibility keeping leverage high and delaying its growth initiatives," said Sajjad Alam, a Moody’s senior analyst, in a press release. "The negative actions reflect Moody’s expectation of low and volatile crude oil prices, weaker cash flow generation and the risks of further degradation in credit metrics due to weak industry and capital market conditions."

Moody's lowers Lakeland Tours

Moody's Investors Service said it lowered its ratings for Lakeland Tours, LLC (WorldStrides), including the company's corporate family rating to Caa3 from B2 and probability of default rating to Caa3-PD from B2-PD and the ratings for its senior secured first-lien bank credit facilities to Caa2 from B1. The outlook remains negative.

"The downgrades reflect significant disruption caused by the Covid-19 coronavirus crisis, which will impose meaningful liquidity stress on the company's business," said Shirley Singh, Moody's lead analyst for Worldstrides, in a press release.

Moody's expects a significant increase in trip cancellations to prompt a big cash drain as deposits already received are refunded. "Liquidity will quickly weaken and WorldStrides' very high leverage in excess of 9x increases the risk of default, whether pre-emptively via a distressed exchange of debt or otherwise," added Singh.

Fitch lowers Lonestar Resources US

Fitch Ratings said it downgraded Lonestar Resources US, Inc. and Lonestar Resources America, Inc. to CCC+ from B-. The senior secured revolver issued by Lonestar Resources America was downgraded to B+/RR1 from BB-/RR1 and the senior unsecured debt issued by Lonestar Resources America was downgraded to B/RR2 from B+/RR2.

The downgrade reflects Lonestar’s narrowing financial flexibility in the current low commodity price environment, increasing negative redetermination risk on its more than 80% drawn revolver.

While Lonestar Resources US has largely mitigated their price risk through high hedge coverage, which will protect their development capital and production profile through 2021, Fitch expects the company’s resource development will continue to be borrowing base-supportive; however, free cash flow is forecasted to be relatively neutral, limiting the capacity for reduction of the revolver balance.

S&P lowers Martin Midstream

S&P said it lowered its ratings on Martin Midstream Partners LP and the company’s $374 million of senior unsecured notes due February 2021 to CCC- from B-. The 3 recovery rating is unchanged, indicating an expectation for meaningful (50%-70%; rounded estimate: 50%) recovery.

The downgrade reflects S&P’s expectation that Martin Midstream will not be able to refinance its 2021 senior unsecured notes before Aug. 19, which will accelerate the revolver maturity date to Aug. 20, from Aug. 31, 2023. In the agency’s view, Martin will not have sufficient liquidity to repay the $201 million outstanding revolver balance in 2020.

The outlook is negative.

Moody’s cuts Matador Resources

Moody’s Investors Service said it downgraded Matador Resources Co.’s corporate family rating to B3 from B1, probability of default rating to B3-PD from B1-PD and senior unsecured notes to Caa1 from B2. The speculative grade liquidity rating was downgraded to SGL-3 from SGL-2. The agency revised the outlook to negative.

The downgrade reflects Matador’s high debt leverage at a time when very low commodity prices are likely to lead to dramatically reduced cash flow, Moody’s sai. The downgrade also encompasses concerns about the company’s ability to cut spending and realize cost savings quickly enough to preserve liquidity and prevent breaching its leverage covenant under its revolving credit facility, should oil prices remain at or below $30 per barrel.

Moody's trims Murphy Oil

Moody's Investors Service said it downgraded Murphy Oil Corp.'s corporate family rating to Ba3 from Ba2, its probability of default rating to Ba3-PD from Ba2-PD and its senior unsecured notes rating to Ba3 from Ba2. The speculative grade liquidity rating was downgraded to SGL-2 from SGL-1. The outlook is negative.

The downgrade of Murphy's CFR to Ba3 reflects Moody's expectation Murphy will generate retained cash flow to debt of less than 20% and negative free cash flow in 2020 as a result of the downturn in oil prices. “This will result in weak cash flow based credit metrics in 2020 under our base assumptions for oil and gas prices and those metrics may not meaningfully improve in 2021,” said the agency in a press release.

Murphy's negative outlook reflects Moody's expectation the company's production will not meaningfully decline and liquidity will remain adequate.

Fitch cuts Nabors Industries

Fitch Ratings said it downgraded the issuer default rating for Nabors Industries, Ltd. and Nabors Industries, Inc. to B- from BB-. Also, Fitch lowered the senior unsecured priority guaranteed revolving credit facility due 2023 to BB-/RR1 from BB/RR2, the senior unsecured guaranteed notes to B-/RR4 from BB-/RR4 and the senior unsecured notes to CCC/RR6 from B+/RR5. The agency put the ratings on rating watch negative.

The downgrade reflects the risk Nabors stock may be delisted within the next six months, which would cause a fundamental change under the senior exchangeable notes indenture that would allow noteholders to put the $575 million issue to the company at par.

Nabors has filed a proxy for a reverse stock split to mitigate this issue. Still, under current market conditions, it is uncertain whether the stock would remain above $1 over this period. The company is generating free cash flow and has the availability to refinance the notes on the revolver. However, this would materially weaken liquidity at the same time that business conditions are worsening, the agency said.

S&P cuts NEP/NCP

S&P said it downgraded NEP/NCP Holdco Inc.’s first-lien term loan facility to B from B+ and its second-lien term loan to CCC from CCC+. The 2 and 6 recovery ratings for the first- and second-lien facilities, respectively, remain unchanged. The agency also downgraded the company’s rating to B- from B and placed it on CreditWatch with negative implications.

“The downgrade reflects our expectations that NEP/NCP Holdco Inc.'s (NEP's) adjusted leverage will remain above our mid-6x threshold for the current rating over the next 12 months. The CreditWatch placement reflects our view of the company's less-than-adequate liquidity to meet its operational needs. As such, we expect NEP will likely breach its covenants by the end of the second quarter without a covenant amendment,” said S&P in a press release.

Fitch cuts Occidental

Fitch Ratings said it downgraded the long-term issuer default rating of Occidental Petroleum Corp. to BB+ from BBB+ and placed its ratings on rating watch negative. Fitch also withdrew the long-term IDRs for Anadarko Petroleum Corp., Anadarko Holding Co. and Kerr-McGee Corp., following the completion of debt exchanges of all outstanding Anadarko debt for equivalent Occidental debt.

The downgrade’s main driver is the sharp drop in oil prices, which resulted in weaker near-term leverage metrics and cash flow protections for Occidental. The oil price collapse has significantly increased execution risk around remaining planned asset sales needed to pay off pending maturities taken out to finance the Anadarko acquisition, the agency said.

The RWN reflects the heightened event risk the company may look to address its capital structure to alleviate current constraints if low oil prices persist.

Fitch lowers Ovintiv

Fitch Ratings said it downgraded the issuer default ratings of Ovintiv, Inc., Ovintiv Canada ULC and Ovintiv Exploration Inc., and all related unsecured debt of these entities to BBB- from BBB. The outlook is negative.

The oil deck price collapse triggered the downgrade. The lower prices led Fitch to revise its base case price deck used to assess exploration and productions lower, and results in leverage metrics that trip the existing sensitivity for a downgrade to BBB- for Ovintiv.

The negative outlook is driven by the company’s relative positioning to exploration and production peers with regards to margins (Ovintiv is lower than diversified exploration and production peers due to its above-average exposure to natural gas and natural gas liquids). Additionally, its maturity profile, while manageable, is also somewhat bigger than peers and could become more of an issue in a lower for the longer environment, Fitch said.

Fitch cuts Precision Drilling notes

Fitch Ratings said it downgraded Precision Drilling Corp.’s senior unsecured notes B+/RR4 from BB-/RR3 and changed the outlook for the company to negative from stable.

The downgrade of the senior unsecured notes reflects lower recovery prospects based on estimated earnings during a downturn and lower rig values.

The negative outlook reflects challenging capital market access and the uncertainty of the length and the depth of commodity price downturns. Precision’s financial policy has been relatively conservative, which provides it the ability to withstand significantly lower commodity prices, Fitch said.

Fitch downgrades SM Energy

Fitch Ratings said it downgraded the issuer default rating for SM Energy Co. to B- from B+, the senior secured revolver to BB-/RR1 from BB+/RR1 and the senior unsecured notes to B-/RR4 from BB-/RR3. The agency placed the ratings on rating watch negative.

The downgrade reflects the effect on earnings and liquidity from the recent decline in oil and natural gas prices and Fitch’s expectations the downturn may be deep and lengthy. Based on current guidance and Fitch’s revised price deck, Fitch said it expects SM to generate free cash flow deficits and elevated leverage metrics that could weaken liquidity measures due to borrowing base revisions and incremental borrowings.

The rating watch negative reflects the challenges of operating in a low commodity price environment with a material maturity wall. Also, there is a possibility financial covenants could be breeched and liquidity could be further tightened in an event of a cure, the agency said.

S&P trims Tailored Brands

S&P said it downgraded all its ratings for Tailored Brands Inc., including the issuer rating to CCC+ from B, reflecting the agency’s view of the company’s capital structure as unsustainable given substantially weakened earnings prospects.

“We believe the anticipated performance pressures at Tailored, combined with the adverse effects of the coronavirus pandemic, will increase refinancing risk as the company’s debt comes due,” said S&P in a press release.

The outlook is negative.

Moody's downgrades Transocean

Moody's Investors Service said it downgraded Transocean Inc.'s corporate family rating to Caa1 from B3, probability of default rating (PDR) to Caa1-PD from B3-PD and senior unsecured notes rating to Caa3 from Caa2.

Moody's also downgraded Transocean's senior secured revolving credit facility to B1 from Ba3, senior secured notes issued by various Transocean's subsidiaries to B2 from B1 and priority guaranteed senior unsecured notes to Caa2 from Caa1. Transocean's speculative grade liquidity rating was downgraded to SGL-2 from SGL-1. The rating outlook remains negative.

"The offshore sector's modest signs of improvement in 2019 did not significantly increase Transocean's contract backlog vis-a-vis its debt burden, and while dayrates have modestly improved, for some rig types and geographic markets, the appreciation has been considerably slower than expected. The commodity price collapse in the first quarter of 2020 poses a substantial challenge for the company to improve its cash flow outlook, as near-term improvement of offshore fundamentals is unlikely," said Sreedhar Kona, a Moody's senior analyst, in a press release. "Transocean's very high financial leverage could worsen making its capital structure untenable."

Moody's trims Travel Leaders

Moody's Investors Service said it downgraded Travel Leaders Group, LLC's corporate family rating to Caa1 from B2, probability of default rating to Caa1-PD from B2-PD and its senior secured first-lien credit facility to Caa1 from B2. The agency also placed the ratings under review for further downgrade.

The downgrade to Caa1 CFR and review reflects severe disruptions within the global corporate and high-end leisure travel sectors from the coronavirus pandemic. The action also incorporates Moody's expectation Travel Leaders' operating results and liquidity will deteriorate materially in the near-term and considers uncertainty surrounding the longer-term economic outlook, the agency said.

S&P trims Travelex

S&P said it lowered its rating for Travelex Holdings Ltd.’s €360 million of notes due 2022 to C from CCC and the rating on the £90 million super senior revolver to CCC from B-. The agency cut the company’s rating to CC from CCC.

“Travelex's weak liquidity position means debt restructuring, a distressed exchange, a change in debt priority, or default is almost certain,” the agency said in a press release.

S&P also removed all ratings on Travelex and its debt from CreditWatch negative, where it had placed them on March 4.

The outlook is negative.

Moody's downgrades Tutor Perini

Moody's Investors Service said it downgraded Tutor Perini Corp.'s corporate family rating to B2 from B1, its probability of default rating to B2-PD from B1-PD and its senior unsecured notes rating to B3 from B2. Moody's also downgraded Tutor Perini's speculative grade liquidity rating to SGL-4 from SGL-3 to reflect the looming maturity of its revolving credit facility in December. The outlook has been revised to negative from stable.

"The downgrade of Tutor Perini's ratings and the negative outlook reflects the company's challenges in refinancing $200 million of convertible notes in light of the recent deterioration in credit market conditions and the plunge in its share price due to concerns about work stoppages and the economic impact of the coronavirus, which have exacerbated worries about its inconsistent cash flows and somewhat weak liquidity," said Michael Corelli, a Moody's vice president, senior credit officer and lead analyst for Tutor Perini, in a press release.

Moody's trims Verifone

Moody's Investors Service said it downgraded Verifone Systems, Inc.'s corporate family rating to B3 from B2 and probability of default rating to B3-PD from B2-PD. The company's senior secured credit facility rating was downgraded to B3 from B2. The outlook remains stable.

The downgrade reflects sustained elevated leverage and limited cash flow generation as the company continues restructuring activities and potential additional near-term pressures from Covid-19, the agency said.

Fitch cuts Western Midstream

Fitch Ratings said it downgraded Western Midstream Operating, LP's long-term issuer default rating and senior unsecured ratings to BB+ from BBB- and placed the partnership’s ratings on rating watch negative. The senior unsecured notes have a recovery rating of RR4.

The downgrade reflects the deterioration in Western's credit quality following Fitch's negative rating action of its owner and major counterparty, Occidental Petroleum Corp.

Western's counterparty risk is significantly heightened, as the partnership is now predominately exposed to non-investment grade counterparties. The ratings take into account Western's significant dependence on Occidental and its performance is mostly driven by its parent's balance sheet, Fitch said.

S&P lowers WeWork

S&P said it lowered its ratings on WeWork Cos. LLC and the company’s unsecured debt to CCC+ from B- and B, respectively. The agency also changed the recovery rating to 3 (rounded estimate: 55%) from 2.

WeWork’s liquidity and the sustainability of its business face added pressure given the uncertainty around the extent of Softbank’s support, Covid-19, and recession impacts. Business disruption related to the global recession, a rush to remote working and uncertainty around self-quarantine precautions could weigh heavily on WeWork’s business viability, encouraging a drop in total occupancy levels, an increase in operating costs and pressure on the company’s ability to fill recently opened locations.

S&P placed the ratings on CreditWatch with negative implications. The agency plans to monitor the company’s cash burn rate and any cost-saving steps.

Moody's lowers Whiting Petroleum

Moody's Investors Service said it downgraded Whiting Petroleum Corp.'s corporate family rating to Caa1 from B1, its B1-PD probability of default rating to Caa1-PD and its B2 senior unsecured notes rating to Caa2. Whiting's speculative grade liquidity rating has been downgraded to SGL-4 from SGL-3. Moody’s changed the outlook to negative from stable.

"Whiting faces daunting prospects in its effort to refinance its near-term maturities, which could compel it to pursue a distressed exchange of its maturing debt," said Andrew Brooks, a Moody's vice president, in a press release. "Whiting operates an attractive asset base in the Williston Basin's Bakken and Three Forks formations where it is predominantly oil-weighted, targeting breakeven cash flow by reducing costs through maximizing drilling and completion efficiencies."

The outlook is negative, reflecting the challenges faced by Whiting as it confronts near-term debt maturities in a low-priced oil environment.

S&P lowers Zinc-Polymer

S&P said it downgraded the ratings for Zinc-Polymer Parent Holdings LLC and its senior secured credit facilities to CCC+ from B.

“Zinc-Polymer Parent Holdings LLC (Jadex Inc.) has not reduced its transaction and restructuring costs from spinning out of Newell Brands at the pace we anticipated, leading to higher adjusted leverage metrics relative to peers'. While we believe these costs will decline over time, our economists' revised macroeconomic outlook that we are in a global recession puts significant pressure on demand for the company's products, in our view, and is likely to result in meaningfully higher debt leverage over the next year,” said S&P in a press release.

The outlook is negative.

S&P revises Aegis Toxicology view to negative

S&P said it revised its outlook for Aegis Toxicology Sciences Corp. to negative from stable and affirmed its ratings on the company.

“The negative outlook reflects the potential for a lower rating over the next few quarters if volume and EBITDA decline significantly, most likely due to an adverse economic impact from Covid-19 or if the company is likely to breach its covenants and not receive an amendment from lenders,” said S&P in a press release.

Aegis has a covenant stepdown in March and another in September. Given the elevated leverage, S&P believes there will be very little covenant cushion and the risk of a covenant breach has heightened, especially given the tight conditions of credit markets.

Fitch revises Avolon view to negative

Fitch Ratings said it revised Avolon Holdings Ltd.'s outlook to negative from stable on coronavirus-related risks, while affirming the long-term issuer default rating and senior unsecured debt ratings of Avolon and its subsidiaries at BBB- and senior secured debt ratings at BBB.

The outlook revision reflects the unprecedented decline in global air traffic as a result of the coronavirus pandemic, which could lead to widespread lease deferrals/defaults, airline bankruptcies, aircraft repossessions and impairments absent abatement of the virus in the near- to intermediate-term and/or material sovereign intervention, Fitch said.

Fitch changes Baytex view to negative

Fitch Ratings said it affirmed Baytex Energy Corp.’s long-term issuer default rating at B+ and senior unsecured debt at BB-/RR3 and revised the outlook to negative from stable.

The outlook reflects Fitch’s estimate the current weak oil and gas price environment will narrow financial flexibility and heighten the risk of lower production and reserves due to development spending reductions. Following the repayment of the 2022 notes, Fitch estimates Baytex has availability of roughly half of its $575 million credit facility at year-end 2020, with limited contingent liquidity options given challenged capital market access and non-core asset sale prospects.

Fitch said it expects management to preserve and potentially generate liquidity by materially cutting capital spending. These reductions in capital expenditures and corresponding operational momentum loss pose a threat to medium-term production, reserves and profitability.

S&P changes Chevron view to negative

S&P said it revised the outlook on Chevron Corp. to negative from stable and are confirmed its AA long-term issuer credit rating and senior unsecured issue-level rating on the company.

The negative outlook reflects the company's weaker-than-expected financial performance in 2020, including funds from operations to debt of less than 60% and debt to EBITDA of more than 1.5x, and the potential S&P will downgrade Chevron if it's credit measures do not improve next year.

S&P shifts Electronics For Imaging view to negative

S&P said it revised the outlook for Electronics For Imaging Inc. to negative from positive, citing the macroeconomic effect of the Covid-19 pandemic. S&P affirmed the company’s B- rating.

The large capital requirement of the company's digital inkjet printers make it vulnerable in an economic downturn. Electronics for Imaging’s digital inkjet printers cost ranges from the hundreds of thousands of dollars to the low-million dollar area, which would be a significant investment for any company considering its products. “Given the economic downturn from the impact of Covid-19, we expect that companies will cut investment spending as they see weaker customer demand,” S&P said in a press release.

S&P puts Harley-Davidson on watch

S&P said it placed the ratings for Harley-Davidson Inc. and its debt on CreditWatch with negative implications.

The CreditWatch listing mirrors weak profitability measures at the current BBB+ rating, and it is unlikely Harley can improve its EBITDA margin this year given anticipated heightened cash flow volatility due to increased risks of slower consumer purchasing behavior stemming from the Covid-19 pandemic and the projected U.S. and European recession this year.

“We plan to reassess our base-case forecast for revenue, EBITDA, margin, cash flow, leverage and liquidity in coming weeks,” the agency said in a press release.

S&P changes NuStar view to negative

S&P said it revised the outlook for NuStar Energy LP to negative from stable and affirmed the company’s BB- ratings as well as the B- rating on its subordinated notes. The 3 recovery rating on the senior unsecured debt and 6 recovery rating on the subordinated notes are unchanged.

The company faces $750 million of debt coming due through February 2021. Given current market conditions, S&P said it believes NuStar could have difficulty refinancing.

S&P revises Rough Country view to negative

S&P said it changed the outlook on Rough Country LLC to negative from stable and affirmed the B issuer credit rating on the company.

“The negative outlook reflects the potential that we will lower our rating on Rough Country over the next few quarters if its sales and EBITDA do not appear to stabilize, leading it to sustain a FOCF-to-debt ratio below 3%,” said S&P in a press release.

Fitch revises Vermilion view to negative

Fitch Ratings said it revised the outlook for Vermilion Energy Inc. to negative from stable and affirmed the long-term issuer default rating at BB- and the company’s senior unsecured rating at BB-/RR4

The main driver for the negative outlook is caution around the company’s high secured credit facility balance (currently 73% drawn), which stands out versus its U.S. high yield exploration and production peers. This higher balance is mitigated by several factors, including that the secured revolver is covenant-based, and not subject to borrowing base redetermination risk; the lack of springing lien issues in Vermilion’s capital structure and a generally supportive bank group. Despite these qualifications, Fitch said it believes a large drawn revolver balance is a differentiating source of risk in the current low-price environment.

Moody’s changes Diamondback view to stable

Moody’s Investors Service said it revised Diamondback Energy, Inc.’s rating outlook to stable from positive, and simultaneously affirmed the company’s Ba1 corporate family rating, Ba1-PD probability of default rating and Ba1 senior unsecured notes. The SGL-1 speculative grade liquidity rating remained unchanged.

"Sharply lower oil prices will challenge Diamondback’s profitability and financial flexibility limiting its ability to reduce leverage, generate free cash flow and strengthen its credit profile," said Sajjad Alam, a Moody’s senior analyst in a press release.

"The stable outlook reflects Moody’s expectation that Diamondback will continue to make necessary operating and cost adjustments to maintain production, live within cash flow and retain good liquidity in a low and volatile crude oil price environment," he said.

Moody's changes Endeavor Energy view to stable

Moody's Investors Service said it changed Endeavor Energy Resources, LP's outlook to stable from positive. At the same time, Moody's affirmed Endeavor's Ba3 corporate family rating, its Ba3-PD probability of default rating and B1 senior unsecured notes rating.

"The change of outlook to stable reflects our expectation that very low oil prices are likely to persist through 2020, rendering the potential for an upgrade of Endeavor's ratings remote," noted John Thieroff, a Moody's analyst, in a press release. "The company will curtail activity as the year progresses to preserve cash and maintain credit metrics appropriate for the rating."

Fitch revises Endeavor Energy view to stable

Fitch Ratings said it revised the outlook for Endeavor Energy Resources, LP to stable from positive.

The revision reflects Fitch’s expectation of reduced drilling and completion activity, which will slow operational momentum and mute medium-term production growth. Production and proved reserve growth were the company’s primary positive rating sensitivities. Fitch said it expects Endeavor will demonstrate operational and financial resilience through the cycle.

The agency also affirmed the company’s BB rating.

Moody's revises Hess Midstream view to stable

Moody's Investors Service said it changed the outlook of Hess Midstream Operations LP to stable from positive. The agency affirmed all the partnership’s ratings, including its Ba2 corporate family rating, its Ba2-PD probability of default rating and the Baa3 rating on its secured revolving credit facility and $400 million term loan A. The speculative grade liquidity rating remains SGL-2.

"The change in HESM Opco's outlook to stable reflects limited ratings upside potential in the currently challenged crude oil and natural gas price environment," said Andrew Brooks, a Moody's vice president, in a press release. "HESM Opco shares a strong, well-structured contractual relationship with Hess and the integrated midstream services it owns and operates in support of Hess' production in the Bakken Shale."

Fitch revises Magnolia view to stable

Fitch Ratings said it revised the outlook for Magnolia Oil & Gas Corp. and Magnolia Oil & Gas Operating LLC to stable from positive.

The revision reflects pressure on the company’s production profile created by the recent collapse in global oil prices. “As a result of weaker oil prices, lack of hedges, and a commitment to keep capex within 60% of EBITDAX, we expect MGY won’t achieve our upgrade sensitivity of production exceeding 70,000 (barrels of oil equivalent per day) boepd on a sustained basis in the near term,” said Fitch in a press release.

Fitch also affirmed its ratings on the company, its secured revolver and senior unsecured notes.

Fitch revises MEG Energy view to stable

Fitch Ratings said it affirmed MEG Energy Corp.’s long-term issuer default rating at B and revised the outlook to stable from positive. Also, Fitch affirmed the rating on MEG’s second-lien notes at BB/RR1 and the rating on its senior unsecured notes at B+/RR3.

The revision mirrors the concern of challenging capital market access and the uncertainty of the length and the depth of commodity price downturns. MEG’s financial policy has been relatively conservative, which provides it the ability to withstand significantly lower commodity prices. Nevertheless, if prices remain lower for a prolonged period, MEG’s liquidity could be reduced.

Moody's assigns B3 to Financiere Mendel

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Financiere Mendel SAS (Ceva). Moody's withdrew the existing B3 CFR and the B3-PD PDR that was previously assigned to Financiere Top Mendel SAS.

Moody's reassigned the CFR from Financiere Top Mendel SAS to Financiere Mendel SAS following a change in the broader Ceva group, as a result of which, Financiere Mendel SAS will be the top entity and the new reporting entity within the restricted group going forward.

Moody's also affirmed the B3 senior secured rating of Ceva's existing facilities, comprising a €2 billion senior secured term loan B, a €50 million senior secured acquisition & capital expenditure facility maturing in 2026 and a €100 million senior secured revolving credit facility maturing in 2025, borrowed by the company and its subsidiary Ceva Sante Animale.

The outlook for Financiere Mendel SAS and Ceva Sante Animale remains stable.

Fitch assigns Hudbay B+

Fitch Ratings said it assigned a first-time, long-term issuer default rating of B+ to Hudbay Minerals Inc. and Hudbay Peru SAC. Fitch also assigned a BB+/RR1 rating to the company's senior secured revolving credit facilities and a B+/RR4 rating to the unsecured notes. The outlook is stable.

The ratings reflect Hudbay's modest size and concentration in four mines, its extensive track record of operating copper mines from exploration to production, its low-cost position at Lalor and average cost position at Constancia, long mine life at Constancia and modest mine lives in Manitoba, operations in low-risk jurisdictions and leverage in-line with the ratings.

The ratings also reflect Hudbay's commodity diversification and Fitch's expectation for significant free cash flow generation beginning in 2022, following a period of elevated growth capital spending to improve the production profile.

S&P rates Thermo Fisher notes BBB+

S&P said it assigned its BBB+ issue-level rating to Thermo Fisher Scientific Inc.’s proposed senior unsecured notes, which it will issue in multiple tranches.

The company plans to use the proceeds to partially fund its planned $11.5 billion acquisition of Qiagen NV, to repay Qiagen's debt and for general corporate purposes.

S&P affirmed the company’s ratings after it announced it plans to acquire Qiagen.

S&P acts on entertainment, consumer goods companies

S&P said it acted on the ratings of more than 20 entertainment and consumer goods companies citing the effect of the coronavirus and the likelihood of a recession this year.

S&P downgraded Mattel Inc. to B+ from BB- with an unchanged negative outlook and Fitness International LLC to B from B+ and placed the rating on CreditWatch with negative implications. The agency also downgraded CWGS Enterprises LLC to B- from B and placed the rating on negative watch. Other companies downgraded to B- from B were SP PF Buyer LLC, Kingpin Intermediate Holdings LLC, World Endurance Holdings Inc., Airxcel Inc., Life Time Inc., Bulldog Purchaser Inc.

The agency changed the outlooks for Kingpin, Tornante - MDP Joe Holding LLC and World Endurance to negative from stable,

S&P lowered Topgolf International Inc. and ClubCorp Holdings Inc. to CCC+ from B-. Topgolf’s outlook was changed to negative from stable and ClubCorp’s remained negative. United PF Holdings LLC and Excel Fitness Holdings Inc. were also downgraded to CCC+ with a negative outlook from B with a stable outlook.

The agency placed the following companies are negative watch: Brunswick Corp., Speedway Motorsports LLC, Nascar Holdings LLC, ASM Global Parent Inc., Recess Holdings Inc., PlayPower Holdings Inc. and Equinox Holdings Inc.

S&P acts on gaming companies

S&P said it downgraded several gaming companies and placed many of them on CreditWatch with negative implications citing the effects of the coronavirus pandemic on travel and closures of casinos.

S&P cut Wynn Resorts to BB- from BB. The agency lowered Penn National Gaming to B from B+ . Century Casinos was cut to B- from B. S&P downgraded Enterprise Development Authority to CCC+ from B-. Buena Vista Gaming Authority was lowered to CCC+ from B-. S&P cut Downstream Development to CCC from B and sliced Saracen Development to CCC from B-. S&P placed these companies on CreditWatch with negative implications with the exception of Wynn, which was already on negative watch.

The agency placed the following companies on CreditWatch with negative implications: Seminole Tribe of Florida, Las Vegas Sands Corp., PCI Gaming Authority, Churchill Downs Inc., Seminole Hard Rock Entertainment Inc., Scientific Games Corp., Boyd Gaming Corp., Station Casinos LLC, CityCenter Holdings LLC, CCM Merger Inc., AP Gaming Holdings LLC, Everi Payments, Golden Entertainment Inc., Peninsula Pacific Entertainment LLC, Jacobs Entertainment, 18 Fremont Street Acquisition, Affinity Gaming, Century Casinos, Mohegan Tribal Gaming Authority, Mohegan Tribal Finance Authority, Spectacle Gary Holdings LLC and Sugarhouse HSP Gaming Prop. Mezz. LP.

MGM Resorts International remains on negative watch.

S&P acts on lodging companies

S&P, citing the effect of the coronavirus pandemic on lodging companies and a possible recession in the second half of the calendar year, took action on several companies.

S&P downgraded Travel Leaders Group LLC to B from B+, Lakeland Holdings LLC to CCC+ from B- and Aimbridge Acquisition Co. Inc. to CCC+ from B.

The agency placed Travel Leaders on CreditWatch with negative implications from a negative outlook and changed Lakeland’s outlook to negative from stable. S&P also changed Aimbridge’s outlook to negative from being on negative watch.

S&P also changed the outlooks for Wyndham Destinations Inc., Marriott International Inc. and Marriott Vacations Worldwide to negative.

The following companies were placed on negative watch: Hyatt Hotels Corp., Hilton Grand Vacations Inc., Extended Stay American Inc. and Playa Hotels & Resorts NV.

Moody's nips Norsk Hydro

Moody's Investors Service said it downgraded the long term issuer and senior unsecured bond ratings of Norsk Hydro ASA to Baa3 from Baa2. The outlook remains negative on all ratings.

The downgrade mirrors the recent deterioration in Hydro's underlying financial performance owing to significant pricing pressures affecting the global primary aluminium market as well as challenging conditions facing the group's downstream activities amid weak transport and automotive markets worldwide and depressed demand conditions in the building and construction sector in Western Europe and the U.S.

Moody’s changes view on VUE

Moody’s Investors Service said it changed the outlook for Vue International Bidco plc from stable to negative.

The change in outlook reflects Moody’s expectation of a spike in VUE’s leverage expected in 2020 triggered by the temporary closures of VUE’s cinemas in all of its territories except for one site in Taiwan. The national governments have mandated the closures in the light of the widespread outbreak of Coronavirus across the globe.

At the same time, the agency affirmed the B3 corporate family rating and B3-PD probability of default rating for VUE. The agency also affirmed the B2 ratings of the new senior secured euro-denominated term loan B1 of €634 million and the term loan B2 (delayed draw tranche) of €114 million (both due 2026) issued by VUE. Moody’s will be withdrawing the B2 rating on the term loan B2, once it expires at the end of March.

Moody's pares Penn National

Moody's Investors Service said it downgraded Penn National Gaming, Inc.'s corporate family rating to B1 from Ba3 and probability of default rating to B1-PD from Ba3-PD. The company's senior secured facilities were downgraded to B1 from Ba2 and senior unsecured rated notes to B3 from B2. The company's speculative grade liquidity rating remains SGL-2. The outlook is negative.

The downgrade is in response to the disruption in casino visitation resulting from efforts to contain the spread of the coronavirus, including recommendations from federal, state and local governments to avoid gatherings and avoid non-essential travel.

These efforts include mandates to close casinos temporarily. The downgrade also reflects the negative effect on consumer income and wealth stemming from job losses and asset price declines, which will diminish discretionary resources to spend at casinos once this crisis subsides, the agency said.

S&P pares Performance Food

S&P said it downgraded Performance Food Group Inc. to B+ from BB- and lowered the rating on the senior unsecured debt to B from B+. The agency also placed the ratings on CreditWatch with negative implications.

The Covid-19 outbreak is leading to a growing number of event cancellations and closures of restaurants, schools, and other institutions. An emphasis on social distancing is also causing significant declines in restaurant traffic. “We believe the revenue and profit of foodservice distributors could decline materially due to their reliance on these industries,” said S&P in a press release.

S&P said it expects to resolve the placement after it assesses the severity and duration of the effect of the coronavirus on Performance’s liquidity position and credit metrics.

Moody's pares Pronovias

Moody's Investors Service said it downgraded the corporate family rating of CatLuxe Acquisition Sarl (Pronovias) to Caa1 from B3 and its probability of default rating to Caa1-PD from B3-PD. Concurrently, the agency downgraded CatLuxe Sarl's senior secured bank credit facilities, consisting of a €215 million term loan B and a €45 million revolving credit facility to B3 from B2. The outlook remains negative on both entities.

"The decision to downgrade Pronovias and maintain the negative outlook reflects the rapid and widening spread of the coronavirus outbreak and our expectations that operational disruptions associated with the outbreak will further weaken the company's liquidity, " said Guillaume Leglise, Moody's lead analyst for Pronovias and an assistant vice president, in a press release.

Moody's snips Station Casinos

Moody's Investors Service said it downgraded Station Casinos LLC's corporate family rating to B2 from B1 and probability of default rating to B2-PD from B1-PD. The agency lowered the company's senior secured revolver and term loans to B1 from Ba3, and the company's senior unsecured notes to Caa1 from B3. The company's speculative grade liquidity rating was downgraded to SGL-2 from SGL-1. The outlook is negative.

Station's downgrade is in response to the disruption in casino visitation resulting from efforts to contain the spread of the coronavirus, including recommendations from federal, state and local governments to avoid gatherings and avoid non-essential travel.

These efforts include mandates to close casinos temporarily. The downgrade also reflects the negative effect on consumer income and wealth stemming from job losses and asset price declines, which will diminish discretionary resources to spend at casinos once this crisis subsides, the agency said.

S&P snips YS Garments

S&P said it downgraded YS Garments LLC (Next Level Apparel) and its bank debt to B- from B.

“We believe Next Level is vulnerable to a decline in demand for its products over the next few months, and that its covenant cushion will narrow. The acceleration of the Covid-19 pandemic drove many organizations to cancel events over at least the next several weeks, reducing demand for wearable promotional products and the blank apparel Next Level supplies to the industry,” the agency said in a press release.

The outlook is negative.

Moody’s trims Darden

Moody’s Investors Service said it downgraded all ratings of Darden Restaurants, Inc., including its senior unsecured ratings to Baa3 from Baa2. The outlook is negative.

"The downgrade is in response to the expectation for a material deterioration in earnings and credit metrics that are driven by the closure of in-store dining across Darden’s entire restaurant base due to efforts to contain the spread of the coronavirus including recommendations from federal, state and local governments," said Bill Fahy, a Moody’s senior credit officer, in a press release.

In response to these operating challenges and to strengthen liquidity, Darden drew down the entire amount available under its $750 million bank revolver in addition to suspending its dividend, share repurchases and all discretionary capital expenditures. "While many restaurants are still able to continue to provide take-out, curbside pick-up and delivery, total restaurant sales will still be substantially below normal operating levels for the typical casual dining restaurant," stated Fahy.

The negative outlook reflects the uncertainty with regards to the potential length and severity of closures and the ultimate effect these closures will have on Darden’s revenues, earnings and ultimate liquidity.

Fitch trims Ford & Ford Credit

Fitch Ratings said it downgraded the issuer default ratings of Ford Motor Co. and its Ford Motor Credit Co. LLC finance subsidiary and affiliates to BBB- from BBB. The outlook for both Ford and Ford Credit is negative.

“The downgrade of Ford's IDR to BBB- with a negative outlook reflects Fitch's significant concerns about the effect that the global coronavirus mitigation actions currently underway will have on the company's near-term financial performance and credit profile,” the agency said in a press release.

Fitch also downgraded FCE Bank plc, Ford Credit de Mexico, SA de CV, Ford Holdings LLC, Ford Credit Canada Co. and Ford Capital BV.

S&P cuts Kohl’s

S&P said it downgraded its ratings for Kohl’s Corp. to BBB- from BBB.

“We believe the coronavirus epidemic will considerably hurt Kohl’s operating performance in 2020. The mandated U.S government requirement for individuals to self-quarantine and avoid crowds, and for nonessential stores to close could heavily weigh on Kohl’s performance in the next few quarters,” said S&P in a press release.

The outlook is negative.

S&P cuts Nordstrom

S&P said it downgraded all its long-term ratings on Nordstrom Inc. to BBB- from BBB.

“The downgrade reflects our concerns over the potential steep impact of the coronavirus outbreak on Nordstrom's sales and cash flows this year. We believe the department store sector is particularly susceptible given its discretionary merchandise mix and our expectation for imminent elevated unemployment and weak consumer demand,” said S&P in a press release.

The outlook is negative.

S&P cuts Parker-Hannifin

S&P said it lowered its ratings on Parker-Hannifin Corp. and the company’s senior unsecured notes to BBB+ from A-.

“The downgrade reflects our expectation for slower deleveraging, given weakness in the short-cycle industrial vertical and severe global macroeconomic weakness due to Covid-19,” said S&P in a press release.

The outlook is negative.

Fitch changes Apache view to negative

Fitch Ratings said it revised Apache Corp.’s outlook to negative from stable.

` The main driver of the revised outlook is the deep drop in oil prices, which led Fitch to revise its base case price deck lower, resulting in weaker near-term leverage metrics and cash flow projections. As a result of the lower deck, Apache’s leverage metrics are weak for the rating category in 2020 and 2021. While Fitch expects Apache’s leverage to fall back into the category in subsequent years, a scenario of prolonged lower prices could result in additional downside pressure. Apache was relatively unhedged in 2020, leaving it exposed to negative spot price movements, the agency said.

The agency affirmed the BBB ratings on the company and its unsecured debt.

Fitch changes Marathon view to negative

Fitch Ratings said it revised the outlook for Marathon Oil Corp. to negative from stable.

The main driver of the revised outlook is the sharp drop in oil prices, which led Fitch to revise its base case price deck lower, resulting in weaker near-term leverage metrics and cash flow protections. In response to the downturn, Marathon will cut its 2020 capital expenditures by at least $500 million.

“While the company has good financial flexibility and a meaningful one-year hedge position to help bridge a low oil price period, the negative outlook is meant to capture the risk to its credit profile should a scenario of very low oil prices be prolonged,” said Fitch in a press release.

The agency also affirmed its BBB ratings on Marathon and its senior unsecured debt.

Fitch: Continental Resources view to stable

Fitch Ratings said it revised the outlook for Continental Resources, Inc. to stable from positive.

The revision reflects structurally lower oil and natural gas prices, evidenced by Fitch’s revised price deck (oil price of $38/bbl and natural gas price of $1.85/mcf for 2020), which Fitch expects to result in a maintenance capital program to preserve longer-term financial and operational flexibility.

“The lower price deck, coupled with relatively flat near-term production growth, will result in elevated 2020 leverage and may potentially delay gross debt reduction. Fitch believes the operational and financial profile is relatively resilient in the lower price environment and is still within investment grade thresholds,” the agency said in a press release.

Fitch affirmed the BBB- ratings on the company and its senior unsecured debt.

S&P assigns Humana notes BBB+

S&P said it assigned its BBB+ debt rating to Humana Inc.’s proposed fixed-rate senior notes with various maturities.

The agency said it expects Humana to use the proceeds for general corporate purposes, which may include repayment of obligations scheduled to mature in 2020 and adding to balance sheet liquidity.

“We expect financial leverage to be 35%-40% (pro forma, on our adjusted basis), which is commensurate with our 2020-2021 run-rate expectations. We also expect EBITDA interest coverage of 10x-15x for the same period,” S&P said in a press release.

The transaction does not affect the company’s BBB+ long-term issuer credit rating or stable outlook.

Fitch rates Nstar green bonds A+

Fitch Ratings said it assigned an A+ rating to Nstar Electric Co.'s issuance of green bonds. The green bonds will mature on April 1, 2030, and rank pari passu with Nstar Electric's other senior unsecured debt.

Proceeds will be used to refinance investments in eligible green expenditures, which were previously financed during the period from July 1, 2018 through Dec. 31.

Nstar Electric's long-term issuer default rating is A.

Moody's takes actions on aircraft lessors

Moody's Investors Service said it affirmed the ratings of the following aircraft leasing companies and revised their outlooks to negative: AerCap Holdings NV, Aviation Capital Group LLC, Avolon Holdings Ltd., DAE Funding LLC, Fly Leasing Ltd. and Voyager Aviation Holdings, LLC.

Moody's also revised the review of Aircastle Ltd.'s Baa3 long-term senior unsecured rating to review for downgrade from review direction uncertain. The ratings of Air Transport Services Group, Inc. and Fortress Transportation and Infrastructure Investors, LLC are not affected by these actions for idiosyncratic reasons, Mody’s said.

The rating actions reflect the likely negative effects on aircraft lessors' financial performance from the widening disruption in airline operations globally relating to the coronavirus pandemic. In connection with these actions, Moody's revised its outlook for the aircraft leasing sector to negative from stable.

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