| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers G > Headlines for Gogo Inc. > News item |
S&P downgrades Gogo
S&P said it lowered the corporate credit rating on Gogo Inc. to CCC+ from B-.
The outlook is negative.
The agency also said it lowered the rating on the company's senior secured notes to CCC+ from B-. The recovery rating remains at 3, indicating 50% to 70% expected default recovery.
S&P also said it lowered the rating on the company's convertible notes to CCC- from CCC. The recovery rating remains at 6, indicating 0 to 10% expected default recovery.
The downgrades reflect an expectation that previously announced equipment issues will weigh on operating and financial performance in 2018, which are expected to have a carry-over effect on the company's growth in 2019, the agency said.
As a result, S&P said it believes there could be a liquidity shortfall in the second half of 2019 absent improvements in operating performance and planned cost saving initiatives.
But the company is expected to have sufficient liquidity to meet cash outflows over the next 12 months with no debt maturities until March 2020.
© 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.