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S&P: Securus outlook stable
Standard & Poor's said it revised its outlook on Securus Technologies Inc. to stable from negative and affirmed the company's B- corporate credit rating and the B- issue-level and 4 recovery ratings on its second-lien notes.
The agency said the outlook revision reflects its view that the company is likely to generate sufficient EBITDA on an ongoing basis to meet its minimum financial maintenance interest covenant of 1.75 times on its second-lien notes. Securus also refinanced its revolving credit facility with a new facility that provides additional liquidity.
S&P said the B- rating reflects the company's highly leveraged financial risk profile and a narrow focus within a competitive and evolving niche marketplace (providing telecommunications services to corrections facilities).
A largely recurring revenue base, supported by long-term customer contracts, fails to mitigate these risks, in the agency's view.
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