S&P downgrades LJ Ruby

S&P said it lowered its ratings for LJ Ruby Holdings LLC and its first-lien term loan to B- from B and cut the second-lien loan a notch to CCC from CCC+. The recovery ratings of 3 and 6 on the first-lien and second-lien debt, respectively, remain unchanged.

“The downgrade reflects our view that lower end-market demand will cause revenue and profitability of LJ Ruby to fall, resulting in higher leverage. We now expect the company's S&P Global Ratings-adjusted debt to EBITDA will exceed 6x through 2021, up from our previous expectation of about 5.5x or lower,” said S&P in a press release.

The outlook is negative.

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