S&P cuts Monitronics

S&P said it lowered its issuer credit rating on Monitronics International Inc. (d/b/a Brinks Home Security) to CCC from CCC+.

At the same time, S&P cut the issue-level rating on the company’s $822.5 million takeback term loan to CCC from CCC+. The recovery rating on this debt remains 3.

Monitronics’ takeback term loan has a maturity of March 29, 2024 and has become current. In addition, its super-priority term loan has a springing maturity to 91 days prior to that of the takeback term loan if it is not repaid or extended by that time.

“While the company has achieved a modest improvement in operating performance, we believe the upcoming maturity presents significant default risk because Brinks Home continues to have cash flow deficits, and current debt market conditions may complicate its ability to refinance,” S&P said in a news release.

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