S&P trims Stearns Holdings view to negative

S&P said it revised its outlook on Stearns Holdings LLC to negative from stable and affirmed the B issuer credit rating.

S&P also affirmed its issue rating on Stearns' senior secured notes at B.

“The negative outlook on Stearns reflects the company's weaker-than-expected earnings, rising leverage, and funding risk due to recent covenant violations that required waivers,” S&P said in a news release. “We believe the company could face profitability challenges in the remainder of 2017, but we expect debt to adjusted tangible equity to remain below 2.0x.”

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