S&P slashes CareerBuilder

Moody's Investors Service said it downgraded CareerBuilder, LLC's corporate family rating to Caa3 from Caa1, probability of default rating to Ca-PD from Caa1-PD and senior secured first-lien term loan rating to Caa3 from Caa1. The outlook was changed to stable from negative.

“The downgrade of CareerBuilder's CFR to Caa3 reflects Moody's view that the likelihood of a debt restructuring has increased given the company's July 2023 maturity of its senior secured term loan and the company's negative operating trends that include declining revenue, negative free cash flow and a lack of consolidated profits. Moody's views the capital structure as unsustainable particularly given the limited timeframe the company has to complete an asset sale and, or refinancing.

“The downgrade of the PDR to Ca-PD from Caa1-PD specifically incorporates Moody's view of a high likelihood of a distressed exchange––pre-emptive or otherwise––with an above average recovery in the event of default,” the agency said in a press release.

The stable outlook mirrors the probability of default will persist as CareerBuilder addresses its upcoming maturities, Moody’s said.

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