S&P changes Flavors to negative

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

At the same time, the agency affirmed the CCC+ issue-level ratings on the company's $50 million senior secured revolving credit facility due in 2019 and $350 million senior secured first-lien term loan due in 2020.

The recovery ratings remain 3, indicating expectations for meaningful (50%-70%; rounded estimate: 65%) recovery in the event of a payment default.

The agency also affirmed the CCC issue-level rating on the company's $50 million senior secured second-lien term loan due in 2021. The recovery rating remains 5, indicating modest (10%-30%; rounded estimate: 25%) recovery.

S&P said the revision reflects a view that the company's liquidity position will remain constrained over the next few quarters as its revolver becomes current in October and the company faces further covenant step-downs.

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