S&P lowers Onsite Rental

S&P said it lowered the corporate credit rating on Onsite Rental Group Pty Ltd. to B- from B.

The agency also said it lowered the rating to B- from B on Onsite's $320 million first-lien senior secured term loan B issue.

The outlook is negative.

The recovery rating on the senior secured debt issue remains at 3.

The downgrades reflect a view that the continued decline in resource construction activity will reduce Onsite's earnings for the year ending June 30, S&P said.

Onsite's credit metrics will be lower than previously forecast and any further underperformance would tighten the company's covenant headroom, the agency said.

Revenue from other sources would merely offset the decline and significant growth is likely to be modest over the near term, S&P said.

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