S&P cuts Monitronics view to negative

S&P said it affirmed its B- corporate credit rating on Monitronics International Inc. The outlook is negative.

At the same time, S&P said it affirmed the B- issue-level rating on the company's first-lien debt, which includes a $295 million revolving credit facility due 2021 (unrated) and $1.1 billion first-lien term loan due 2022. The 3 recovery rating is unchanged, indicating an expectation for meaningful recovery (50-70%; rounded estimate: 65%) in the event of a default.

Additionally, S&P affirmed its CCC- issue-level rating on the company's senior unsecured notes. The 6 recovery rating is unchanged indicating an expectation for negligible recovery (0-10%; rounded estimate: 0%).

“The outlook revision reflects our view that Monitronics will continue reporting negative free cash flow and rising leverage as it experiences little growth in its subscriber base over the next 12 months,” S&P said in a news release.

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