S&P trims Avison Young

S&P said it lowered its ratings on Avison Young (Canada) Inc. and its first-lien term loan due 2026 to CCC+ from B- and revised the outlook to negative from stable. The 4 recovery rating indicates average (35%) recovery on the loan in default.

“Our downgrade and outlook revision reflects our expectation that Avison Young will have reduced earnings, strained liquidity, and EBITDA coverage of cash interest below 1x owing to lower capital markets and leasing activities. For the nine months ended Sept. 30, 2022, Avison Young’s adjusted EBITDA was C$17 million compared with C$38 million in the same period last year, based on S&P's calculation,” the agency said in a press release.

Additionally, Avison is planning two funding facilities with a total capacity of C$50 million, and a proposed temporary covenant waiver on its revolving credit facility, which it also plans to downsize to $70 million from $80 million, to reduce the immediate liquidity risk, S&P noted.

The outlook is negative.

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