S&P downgrades Michael Baker

S&P said it lowered the corporate credit rating on Michael Baker International LLC to B- from B+.

The agency also said it lowered the rating on the company's $350 million senior secured notes due 2018 to B- from B+. The 3 recovery rating is unchanged, indicating 50% to 70% expected default recovery.

S&P also said it lowered the rating on the company's 8 7/8% PIK toggle notes due 2019 issued by parent company, Michael Baker Holdings LLC, to CCC from B-. The 6 recovery rating is unchanged, indicating 0 to 10% expected default recovery.

The outlook is developing.

The downgrades reflect a view of the near-term liquidity and refinancing risk that Michael Baker International faces following the termination of its previously proposed refinancing transaction, S&P said.

That transaction was originally intended to refinance $426 million of the company's outstanding debt due 2018, the agency said.

But management decided to postpone its refinancing efforts over the interim period, S&P said.

© 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.