S&P lowers UTEX to negative

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

The CCC+ rating on the company's first-lien term loan and CCC- rating on its second-lien term loan are unchanged. The recovery rating on the first-lien loan remains at 4, indicating 30% to 50% expected default recovery.

The recovery rating on the second-lien term loan remains at 6, indicating 0 to10% expected default recovery.

The negative outlook reflects a revised assessment of liquidity to less-than-adequate, S&P said.

The ratings also consider UTEX's weak business risk profile due to its limited scale of operations and end-market diversity, as well as its exposure to the volatile oil and gas exploration and production (E&P) sector, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.