S&P changes Great Lakes Dredge view

S&P said it revised its outlook on Great Lakes Dredge & Dock Corp. to negative from stable and affirmed its B- corporate credit rating.

At the same time, the agency affirmed the B- issue-level rating on the company's $325 million senior notes due 2022. The 4 recovery rating indicates an expectation for average recovery (30%-50%; rounded estimate: 30%) in the event of a payment default.

S&P said the revision reflects a belief that Great Lakes' credit measures will remain weak over the next year, with adjusted debt leverage around 7 times, as the company continues to work through an operational restructuring.

In addition, the company's revolver (unrated) matures in December 2019 and Great Lakes relies on this facility to provide necessary liquidity for business operations, including letters of credit, the agency added.

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