S&P trims iQor

S&P said it downgraded iQor Holdings Inc. to CCC from CCC+, its priority exit term loan to B- from B and the issue-level rating on its last-out, first-lien, take-back term loan to CCC from CCC+. The recovery ratings are unchanged.

“Without sufficient liquidity, iQor is at heightened risk to default on its debt maturities in 2024, absent refinancing. IQor's ABL facility has around $32 million of outstanding borrowing and matures Aug. 21, 2024, under a springing maturity provision. As of June 30, 2023, the company's cash balances of $16.2 million are insufficient to cover these outstanding borrowings. IQor also faces the maturity of its priority exit term loan, which has about $90 million outstanding and matures shortly after the ABL on Nov. 21, 2024,” the agency said in a press release.

S&P said it sees an elevated risk of a liquidity shortfall even though it forecasts iQor to deliver positive free cash flow over the next 12 months.

The outlook is negative.

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