S&P: United Distribution view to negative

S&P said it affirmed the CCC+ corporate credit rating on United Distribution Group Inc. and revised the outlook to negative from stable.

At the same time, the agency affirmed the issue-level ratings on United Distribution’s first-lien revolving credit facility and term loan at B- and the issue-level rating on its second-lien term loan at CCC-. The recovery ratings on the debt are unchanged at 2 and 6, respectively.

"The negative outlook reflects our view that we could lower our ratings on UDG by one notch in October 2017 if the company does not have a viable plan in place to refinance its senior secured first-lien term loan due October 2018, which would indicate potential default," S&P credit analyst Michael Ohneck said in a news release.

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