S&P cuts Shape Technologies

S&P said it lowered its issuer credit rating on Shape Technologies Group Inc. to B- from B.

At the same time, the agency lowered its issue-level ratings on the company's $350 million term loan due in 2025 (which includes a $300 million term loan and a $50 million incremental term loan) and $15 million revolving credit facility due in 2023 to B- from B. The 4 recovery rating is unchanged.

The outlook is negative.

The downgrade follows weaker-than-expected operating performance as a result of challenging market conditions in Europe and softness in the company’s automotive end markets, coupled with higher costs dampening profitability, S&P said in a news release.

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