S&P lowers Digital River view to negative

S&P said it revised the outlook on Digital River Inc. to negative from stable and affirmed the ratings on the company.

The negative outlook reflects the material risk that the company may be unable to refinance its first-lien credit facilities due in February 2021 if its operating performance remains weak in 2019, S&P said.

Digital River recently reported its 2018 financial results, which included a 17% decline in its full-year revenue to about $235 million, the agency said.

Digital River's revenue declined each of the past five years and has been affected by the divestiture of Digital River World Payments, S&P added, and the loss of the company's exclusive agreement to manage Microsoft's e-commerce platform.

The persistent operating weaknesses will make refinancing or extending the 2021 maturity of its first-lien credit facilities challenging, the agency said.

© 2015 Prospect News.
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