S&P upgrades Progrexion

S&P said it upgraded PGX Holdings Inc. (Progrexion) to CCC+ from D, the first-lien issue-level rating to B- from D, and the second-lien term loan issue-level rating to CCC- from D. The recovery ratings are unchanged.

Progrexion obtained an amendment to its credit agreements which, among other things, reduces its annual cash interest payments by $10 million and improves its cash flow and extends its existing debt maturities by three years, S&P said.

Though the upgrade fixes near-term liquidity issues, S&P said the company’s capital structure is still unsustainable without a major improvement in operating performance.

The outlook is negative.

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