S&P revises Veregy outlook to negative

S&P said it revised its outlook for Veregy Intermediate Inc. to negative from stable and affirmed its B- ratings.

“Veregy has substantially underperformed our initial expectations since its leveraged buyout in late 2020. Its small EBITDA base steadily declined about 25% to roughly $35 million as of Sept. 30, 2022, and we do not forecast material improvement through 2023. While the company had adequate liquidity sources as of Sept. 30 of about $72.7 million, we expect the cash balance to decline in the fourth quarter and Veregy to end 2022 with about $55 million-$60 million total liquidity,” the agency said in a press release.

S&P warned it could downgrade Veregy over the next 12 months if its EBITDA continues weakening, tightening liquidity or if it considers Veregy’s capital structure is unsustainable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.