S&P lowers Hoover to negative

S&P said it revised the outlook on Hoover Group Inc. to negative from stable and affirmed its B- issuer credit rating.

The agency said it believes Hoover could face constrained liquidity over the next 12 months because its $30 million revolving credit facility, which is currently about $20 million drawn, becomes current this month.

The company keeps a fairly low cash balance, much of which is spread across more than 25 countries and may not be easily accessible, S&P added.

The agency also said it does not believe the company will complete a refinancing of its entire capital structure over the next six to 12 months.

Instead, S&P said it expects the company could pursue an extension of the revolver maturity.

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