S&P puts Koosharem on watch

Standard & Poor's said it placed Koosharem Corp.'s B corporate credit rating on CreditWatch with negative implications.

The watch reflects the difficulty that S&P said it believes the company faces in the near term to meaningfully increase EBITDA and reduce debt, both of which will be essential to complying with an aggressive schedule of tightening leverage covenants.

S&P said it is concerned that deteriorating conditions in the staffing industry could hurt the company's operating performance. Koosharem's bank total leverage covenant also steps down twice during the next six months and could require an amendment by year-end.

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