S&P rates SFX notes B-

Standard & Poor's said it assigned a B- corporate credit rating to SFX Entertainment Inc., along with a B- rating on its $220 million senior secured second-lien notes with a recovery rating of 3, indicating 50% to 70% expected default recovery.

The outlook is negative.

The ratings reflect the company's rapid expansions through acquisitions in the electronic dance music live-event niche, said Christopher Thompson, an S&P analyst.

The company had a vulnerable business risk profile because of its limited track record, acquisitive growth strategy and lack of business diversity, Thompson said in a press release.

Concerns associated with the company include substance abuse risks at its events and personnel risks, the analyst 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.