S&P downgrades Digital River

S&P said it downgraded Digital River Inc. to CCC+ from B-.

The agency also lowered the rating on Digital River’s first-lien term loan to B- from B and the second-lien term loan to CCC from CCC+. The recovery rating on the first-lien term loan is 2 and the rating on the second-lien term loan is 5.

“The downgrade is based on our expectation of negative free cash flow persisting through 2020, primarily stemming from continued investment into its business as well as the planned attrition of a large client , which accounted for ~9% of revenue in 2019,” said S&P in a press release.

The outlook is stable.

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