S&P downgrades Outerwall

S&P said it lowered the corporate credit rating on Outerwall Inc. to B from B+ and removed it from CreditWatch with negative implications, where it was placed in March 2016.

Following the acquisition of Outerwall by Apollo Global Managements LLC, Outerwall was split into three subsidiaries: Redbox, ecoATM and the coin-counting operation of Coinstar.

Aspen Merger Sub was formed to temporarily hold the coin-counting operation, S&P explained.

Ultimately, Aspen Merger Sub was merged into Outerwall, which was simultaneously renamed Coinstar LLC, the agency said.

The stable outlook reflects an expectation that credit metrics will modestly improve over the next one- to two-years from profit growth and the company's ability to generate good free cash flow, S&P said.

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