| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers M > Headlines for Mattress Holding Corp. > News item |
S&P downgrades Mattress
Standard & Poor's said it lowered its corporate credit rating on Mattress Holding Corp. to CCC+ from B and all of the company's issue-level ratings by two notches.
The ratings were removed from CreditWatch, where they were placed with negative implications on June 23, and the outlook is developing.
The agency said the downgrade reflects weaker-than-expected credit metrics, including a lease-adjusted total debt-to-EBITDA ratio of about 8.6 times for the 12 months ended July 29, and S&P's concerns about liquidity given a narrowing cushion on Mattress Holding's financial covenants.
If leverage increases and the company cannot meet its financial covenants, be granted a waiver or an amendment or receive an equity cure from its sponsor, S&P could lower the ratings. However, the agency said it could consider a positive outlook or a higher rating if the company can improve liquidity and restore adequate cushion on its financial covenants.
© 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.