S&P trims Oak Holdings view to negative

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

At the same time, S&P said it affirmed the B issue-level rating on the company's $40 million revolving credit facility due in 2021 and $395 million first-lien term loan facility due in 2023. The recovery rating remains 3, indicating an expectation for meaningful (50%-70%, rounded estimate 55%) recovery in the event of a payment default.

“The negative outlook reflects the significant increase in the company's leverage and the risk of a downgrade over the next one to two quarters if the company is unable to reduce leverage and improve cash flow generation consistent with our expectations,” S&P said in a news release.

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