S&P lowers Onsite to negative

Standard & Poor’s said it revised the outlook on the issuer credit rating of Onsite Rental Group to negative from stable.

The agency also said it affirmed its B corporate credit rating, along with the B rating with 3 recovery rating on the company’s $320 million first-lien senior secured term loan B.

The negative outlook reflects the company’s challenging trading conditions and limited growth prospects, which are likely to place downward pressure on its earnings in the short- to medium-term, S&P said.

The company’s leverage is expected to remain elevated through fiscal 2015 and fiscal 2016 with limited buffer in the company’s credit metrics at the current rating level, the agency added.

The outlook revision also considers concerns that the company will be subject to step-down covenants in September 2015, during which the company will be operating with diminished covenant headroom and limited buffer for further underperformance, S&P said.

Onsite’s business risk profile is considered weak, reflecting its relatively small size globally and its participation in the highly competitive, cyclical and fragmented equipment-rental industry, the agency 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.