OREANDA-NEWS. S&P Global Ratings affirmed and removed its ratings, including the 'B' corporate credit rating, on audiovisual services provider, AVSC Holding Corp. from CreditWatch, where it had placed them with positive implications on June 9, 2016. The rating outlook is stable.

"The rating actions reflect our view that following AVSC's postponement of its IPO, its leverage will remain above 5x in 2017," said S&P Global Ratings' credit analyst Heidi Zhang. "We could raise our corporate credit rating on AVSC if the company does launch an IPO and uses the proceeds to repay debt, causing leverage to fall under 5x." As the timing of the potential IPO is uncertain, we don't factor the effect of a potential IPO into our ratings and outlook on the company.

The stable outlook reflects our expectation that AVSC's liquidity will remain adequate and its adjusted leverage will decline to the low-5x area over the next 12 months.

We could consider raising the corporate credit rating if the company moderates its financial policy or completes an IPO such that it reduces adjusted leverage to below 5x on a sustained basis while generating meaningful discretionary cash flow.

We could lower the rating if ASVC's discretionary cash flow approaches breakeven levels or if its adjusted leverage rises above 7x. This could result from economic cyclicality, large debt-financed acquisitions or dividends, underperforming acquisitions, increased competitive or client pressure on pricing.