S&P downgrades New Millennium

S&P said it lowered the issuer credit rating on New Millennium Holdco Inc. to CC from CCC+.

The agency also said it lowered the rating on the company's senior secured term loan to CC from CCC+, reflecting the elevated likelihood for a payment default or restructuring of this obligation.

New Millennium continues to struggle under a heavy debt burden, including an EBITDA-to-interest coverage ratio of about 0.5x, S&P said.

The agency said it expects that the company will either default on its obligations or pursue a debt restructuring in the next 12 months.

While the company's substantial cash balance had previously provided it with liquidity to meet its obligations, its cash balance declined to $66 million as of year-end 2018 from about $90 million in 2017, S&P said.

The agency also said it believes further declines are highly likely given that its interest expense materially exceeds its EBITDA generation.

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