S&P downgrades Artel

Standard & Poor's said it lowered the corporate credit rating on Artel LLC to CCC+ from B-, along with the rating on its first-lien credit facilities to B- from B.

The recovery rating is unchanged at 2, reflecting 70% to 90% expected default recovery.

The outlook is stable.

The downgrade reflects anticipation that Artel's business operations are not likely to generate enough profit to allow Artel to maintain compliance with its financial covenants during the next few quarters amid revenue declines, said Christian Frank, an S&P analyst.

The stable outlook reflects the company's highly variable cost structure and cost containment initiatives, which will partly mitigate further revenue declines, Frank said in a press release.

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