S&P cuts Jason

S&P said it downgraded Jason Inc. and its first-lien credit facilities to CCC from CCC+ and the second-lien term loan to CC from CCC-.

“The downgrade reflects heightened refinancing risk in advance of Jason's upcoming maturities given continued operating underperformance, despite sufficient liquidity following the divestiture of the North American fiber solutions business. Jason has substantial cash on the balance sheet following the sale of its noncore segments. However, it has repaid a minimal amount of debt so far, and we believe it will prioritize reinvestment of the remaining $57.6 million of cash proceeds back into the business over debt repayment,” said S&P in a press release.

The outlook is negative.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.