S&P changes Dealer Tire view to negative

S&P said it changed the outlook for Dealer Tire LLC to negative from stable, citing slackening demand for tires and auto reconditioning services.

“The negative outlook reflects increased risk that EBITDA will be worse than current expectations, leading to leverage higher than required by its covenants. It also reflects the risk cash flow will remain negative for multiple quarters, hurting liquidity,” S&P said in a press release.

The agency affirmed the B issuer rating.

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