S&P revises Artesyn view to negative

S&P said it revised its outlook on Artesyn Embedded Technologies Inc. to negative and affirmed the issuer credit rating at B-.

S&P also affirmed the B- issue-level and 3 recovery ratings on Artesyn's $230 million remaining senior secured notes due October 2020. The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 50%) of principal in the event of a payment default.

“The negative outlook revision primarily reflects Artesyn's weakened liquidity position, around $50 million in combined cash and asset-based lending (ABL) availability as of June 30, 2018, stemming from increased capital expenditure requirements and working capital outflows,” S&P said in a news release.

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