S&P: Koosharem view negative

Standard & Poor's said it revised the outlook on Koosharem Corp. to negative from stable and affirmed the B long-term corporate credit rating.

The agency also affirmed its B+ bank loan following the announcement that the company will increase the add-on portion of its first-lien term loan to $109 million from $84 million.

Proceeds will be used to help fund the acquisition of Resolve Staffing Inc.

S&P said the outlook revision reflects concern that deteriorating staffing industry conditions could jeopardize earnings stability and the company's ability to comply with its bank total leverage covenant, which steps down twice over the next year, potentially requiring an amendment.

Ratings reflect Koosharem's limited geographic diversity, niche position in the highly competitive and cyclical temporary staffing industry and active acquisition orientation, the agency said.

The issuer's leverage rose to about 5.3 times as of Dec. 2 versus 4.9 times at March 31.

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