S&P: Aricent Technologies Is Downgraded To 'B-' On Weak Operating Performance; Outlook Negative
At the same time, we lowered the issue-level rating on the company's first-lien debt to 'B-' from 'B'. The recovery rating remains '3', indicating our expectation of meaningful recovery (50% to 70%; upper half of the range) in the event of a payment default.
In addition, we lowered the issue-level rating on Aricent's second-lien debt to 'CCC' from 'CCC+'. The recovery rating remains '6', indicating our expectation of negligible recovery (0% to 10%) in the event of a payment default.
"The downgrade and negative outlook reflect Aricent's persistently high leverage, narrowing covenant cushion, and exposure to a potential continuing operating weakness," said S&P Global Ratings credit analyst John Moore.