S&P puts IAA on watch

S&P said it placed all its ratings for IAA Inc. on CreditWatch with negative implications, including the company’s BB- rating.

“The CreditWatch placement reflects that there is at least a 50% chance we will lower our ratings on IAA if its auction activity declines longer than we expect, causing its cash flow generation to turn negative, eroding its liquidity, and increasing its debt leverage with no signs of an imminent improvement,” S&P said in a press release.

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