S&P lowers Transcendia

S&P said it lowered the issuer credit rating on Transcendia Holdings Inc. to CCC+ from B-.

In addition, S&P cut the issue-level rating on the company's first-lien credit facilities to CCC+ from B- and the issue-level rating on its second-lien term loan to CCC- from CCC. The recovery ratings are unchanged.

The outlook is negative.

“Transcendia's leverage will likely remain very high over the next 12 months. We view Transcendia's capital structure as unsustainable because leverage is very high, and we believe the company has limited ability to reduce it over the near term through increased profitability or meaningful free cash flow generation,” S&P said in a news release.

“Additionally, demand in many of Transcendia's end markets will likely be weak over the next 12 months, limiting the company's organic growth prospects.”

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