S&P lowers Neovia Logistics

S&P said it lowered the issuer credit rating on Neovia Logistics LP to CCC from CCC+, along with the ratings on its senior secured notes to CCC from CCC+ and the unsecured payment-in-kind notes to CC from CCC-.

The 4 recovery rating on the senior secured notes is unchanged, along with the 6 recovery rating on the unsecured notes.

Neovia is facing maturities across its capital structure over the next 18 months, the agency said.

Its revolving credit facility matures in February 2020, $76.6 million unsecured payment-in-kind notes due in April 2020 and $465 million senior secured notes due in August 2020.

S&P said it believes the company's liquidity is insufficient to repay the revolver.

The agency said the company also needs to address its other upcoming maturities, which could lead to an exchange offer classified as distressed and tantamount to a default.

The outlook is negative.

Given the company's substantial debt load and the recent volatility in the high-yield credit markets, the agency said it sees a risk of the company entering into an exchange wherein debtholders would receive less than the original par value of the securities.

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