S&P lowers Greenhill

S&P said it lowered its ratings on Greenhill & Co. Inc. and its term loan due 2024 to BB- from BB. As of June 30, there was $272 million outstanding on the loan. Its recovery rating remains 3, indicating meaningful recovery (60%) in default.

“The one-notch downgrade reflects Greenhill's weak operating performance, which led to an increase in leverage to 4.3x for the rolling 12 months ended June 30, 2022, from 2.8x at year-end 2021. Our measure of gross debt includes $271.9 million of the term loan and $104.6 million of operating leases. We treat noncash stock compensation expense as an add-back to EBITDA, which tends to be meaningful for Greenhill,” the agency said in a press release.

The outlook remains negative.

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