S&P cuts Range Parent

S&P said it lowered its ratings on Range Parent Inc. (Robertshaw Controls Co.) and the company’s first-lien credit facilities to CCC+ from B-. The agency also cut the second-lien term loan rating to CCC- from CCC.

The downgrade reflects the agency’s view the coronavirus pandemic could cause credit measures to weaken further, S&P said.

“Despite Robertshaw Controls Co.'s progress in controlling costs, along with a decent liquidity position following a $30 million draw on its revolver in its fiscal fourth quarter ended March 31, 2020, we believe that weaker economic conditions could cause earnings and cash flows relative to its fixed charges to become thin. Its EBITDA to interest coverage could remain below 2x and approach 1.5x, a level we consider quite low,” the agency said in a press release.

The outlook is negative.

© 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.