S&P cuts CareerBuilder

S&P said it cut CareerBuilder LLC’s issuer rating to SD from CCC and its secured debt to D from CCC after amending its first-lien credit pact.

“The downgrade follows CareerBuilder's completion of an amendment to its term loan that extended the facility's maturity by three years to July 31, 2026. We view this transaction as distressed and tantamount to a default because of our CCC issuer credit rating on the company, its weak liquidity and ongoing cash burn, and the lack of adequate offsetting compensation for its first-lien term loan lenders,” the agency said in a statement.

S&P said it plans to upgrade CareerBuilder’s ratings probably within a few days to a level that reflects the ongoing risk of a selective or conventional default.”

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