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S&P downgrades Travelex
S&P said it lowered the corporate credit rating on Travelex Holdings Ltd. to B- from B.
The outlook is stable.
The agency also said it lowered the rating on Travelex's £350 million senior secured notes due in 2018 to B- from B.
The recovery rating on the notes is unchanged at 4, indicating 30% to 50% expected default recovery.
S&P also said it also lowered the rating on the £90 million super senior revolving credit facility to B+ from BB-.
The recovery rating remains at 1, indicating 90% to 100% expected default recovery.
The downgrades reflect a view that Travelex faces a number of business challenges that will result in material EBITDA contraction and significantly negative free operating cash flows in the current financial year, the agency said.
A degree of recovery is anticipated in 2017, but there is uncertainty about whether the recovery will sustain metrics consistent with a higher rating level, S&P explained.
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