S&P: Kellermeyer outlook to stable

S&P said it affirmed its ratings on Kellermeyer Bergensons Services LLC, including its B- corporate credit rating, and revised the outlook to stable from negative.

The outlook revision reflects Kellermeyer’s improved cushion to its financial covenants, resulting from modest performance gains, which were mainly due to better utilization of its workforce, and a small reduction in debt, the agency said.

"The outlook is stable, reflecting our belief that the company's new client acquisition efforts and focus on lean cost structure will propel a small amount of EBITDA growth," S&P credit analyst Mariola Borysiak said in a news release.

"This, together with modest debt reduction, will allow the company to maintain adequate cushion to its net leverage financial covenant over the next 12 months, despite this covenant becoming more restrictive as measured at the end of December 2016 and again at the end of March 2017."

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