S&P lowers LaserShip

S&P said it lowered its ratings on LaserShip Inc. (OnTrac) and its first-lien term loan to CCC+ from B- and its second-lien term loan to CCC- from CCC. The recovery ratings are unchanged at 3 (rounded estimate: 50%) and 6 (rounded estimate: 0%), respectively.

“We expect OnTrac will face weaker macroeconomic conditions in 2023. We continue to forecast a shallow recession in 2023 for the U.S. economy. We also anticipate lower consumer spending growth, especially for goods, amid higher interest rates and more normalized spending patterns (with greater share of spending on services and in-person shopping). While we believe OnTrac will grow volumes in 2023 due to the addition of new customers and geographies, we expect overall lower demand may limit this increase,” S&P said in a press release.

Additionally, the agency noted most of OnTrac’s debt is floating-rate and its interest rate hedges will not become effective until November. “As a result, we expect total cash interest expense will continue to increase in 2023.”

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.