S&P cuts Sitel Worldwide

Standard & Poor’s said it lowered its corporate credit rating on Sitel Worldwide Corp. to CCC+ from B-. The outlook is negative.

At the same time, S&P lowered the issue-level rating on the company’s senior secured credit facilities to CCC+ from B-. The recovery rating remains 3 and indicates an expectation of meaningful (50% to 70%) recovery in the event of payment default.

Additionally, S&P lowered the issue-level rating on the company’s senior unsecured notes to CCC from CCC+. The recovery rating remains 5 and indicates an expectation of modest (10% to 30%) recovery in the event of a payment default.

“We base our downgrade of Sitel on the company’s ongoing negative free cash flow, deterioration in liquidity, and continued tight covenant headroom,” said S&P credit analyst Kenneth Fleming in a news release.

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