S&P affirms Sitel, rates add-on B+

Standard & Poor's said it affirmed the ratings of Sitel Worldwide Corp. following the amendment to its credit facility and the partial extension of its $168 million senior secured term loan B due 2017.

The agency also said it assigned a B+ rating and 2 recovery rating to the extended portion of the term loan facility.

The amendment did not alter debt amounts or security. Although the company gained moderate covenant relief through its recent amendment, the outlook remains negative, reflecting challenges related to its declining revenues, S&P said.

The agency said it expects that Sitel's revenue erosion, related to lower business volumes and customer attrition, will moderate beginning in the second half of 2011, reflecting ongoing investments and enhancements to its sales and marketing process.

S&P said it estimates that EBITDA and financial leverage ratios will remain relatively stable over the near term as the company's actions to rationalize operating expenses continue to be successful.

© 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.