S&P trims Service King

S&P said it lowered SK HoldCo LLC (Service King) to CCC from CCC+ on elevated liquidity risk and rising likelihood of a restructuring.

The outlook is negative.

The agency said Service King continues to face heightened refinancing risk related to its term loan B and senior unsecured notes, which mature in 2021 and 2022, respectively, given the significant decline in collision volumes and the challenging conditions in the capital markets due to the coronavirus pandemic.

“We believe the company's liquidity is weakening and view a distressed exchange to be increasingly likely as it seeks to address its capital structure and upcoming debt maturities,” the agency said in a news release.

The issue-level rating on its senior secured debt was lowered to CCC+ from B-, and the issue-level rating on its senior unsecured notes was lowered to CC from CCC-.

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