OREANDA-NEWS. S&P Global Ratings today revised its recovery rating on TwentyEighty Inc.'s senior secured debt to '4' from '3'. The '4' recovery rating indicates our expectation for average recovery (30%-50%; lower half of the range) of principal for secured lenders in the event of a payment default. At the same time, we affirmed our 'CC' issue-level rating on the senior secured debt.

The revision is based on a lower valuation of the company in our simulated default scenario. The valuation reflects a $30 million EBITDA at emergence assumption, which is closer to our estimated EBITDA for the next 12 months, and a 5x distressed EBITDA multiple.