S&P lowers Flexi-Van to negative

Standard & Poor’s said it revised the outlook on Flexi-Van Leasing Inc. to negative from stable and affirmed its BB- corporate credit rating.

The agency said it lowered the rating on the company’s $265 million senior notes to B+ from BB- and revised the recovery rating to 5 from 4.

The 5 recovery rating indicates 10% to 30% expected default recovery.

The outlook revision reflects Flexi-Van’s weaker credit metrics, which are largely due to increased operating costs and higher interest expense related to the incremental debt issued in 2013 to finance a dividend to the company’s owner, David Murdock, S&P said.

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