S&P trims STV

S&P said it lowered its ratings on STV Group Inc. and its credit facility to B from B+. The facility’s 3 recovery rating remains unchanged, indicating an expectation for meaningful recovery (50%-70%; rounded estimate: 55%) in default.

“The recovery in STV's revenue and EBITDA margins will be slower than we previously anticipated due to delayed work in its backlog and a reduced pace of new project awards. The company's operating performance was weaker than we anticipated in 2020. We previously assumed STV's delayed projects would resume in the latter part of 2020 and early 2021; however, the start dates for some projects have been pushed out further,” the agency said in a press release.

The outlook is stable.

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