S&P cuts DexKo Global

S&P said it downgraded DexKo Global Inc. and its first-lien credit facilities to B- from B and the company’s second-lien debt to CCC from CCC+. The 3 recovery rating on the first-lien debt and the 6 on the second-lien are unchanged.

“The downgrade and negative outlook reflect our view that lower end-market demand and a potentially prolonged economic downturn will cause revenue and profitability to fall, resulting in higher leverage than we previously forecast. We now expect the company’s S&P Global Ratings-adjusted debt to EBITDA to exceed 8.5x in 2020, up from our previous expectation of leverage below 7x,” said S&P in a press release.

The outlook is negative.

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