S&P: Hoffmaster view to negative

Standard & Poor's said it revised its outlook on Hoffmaster Group Inc. to negative from stable.

The B corporate credit rating was affirmed and the B issue-level rating on the first-lien facilities. The recovery rating on this debt remains 3, which indicates an expectation of meaningful (50% to 70%) recovery in the event of a payment default.

The agency also affirmed its CCC+ issue-level rating (two notches below the corporate credit rating) on the second-lien facilities. The recovery rating on this debt remains 6, which indicates an expectation of negligible (0% to 10%) recovery in the event of a payment default.

"The outlook revision to negative reflects the potential for lower ratings which could result from weaker liquidity and the increased likelihood of a covenant breach in the next few quarters," S&P credit analyst Henry Fukuchi said in a news release.

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