S&P revises StoneMor view to positive

S&P said it revised StoneMor Partners LP’s outlook to positive from negative and affirmed the CCC issuer rating.

“The Covid-19 pandemic has been a tailwind for STON, as well as the death care industry because it has resulted in a higher number of deaths, increased cemetery preneed sales, and cost reductions. The company produced about $5.5 million of EBITDA in third-quarter 2020, the first positive EBITDA quarter in a while. We expect STON to produce positive EBITDA in fourth-quarter 2020 and 2021,” S&P said in a press release.

However, the agency warned it forecasts StoneMor’s covenants will continue being very tight over the net 12 months.

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