S&P downgrades MRO

S&P said it downgraded MRO Holdings Inc. to B from B+, citing a likely reduced demand for the company’s maintenance, repair and overhaul services to airlines because of the coronavirus’ effect on air travel.

“As a result of the lower demand, we expect MROH's earnings and free cash flow to weaken, resulting in debt to EBITDA likely being around 5x in 2020 compared to our previous forecast of 3.5x-3.9x, and we believe there is the potential for additional downside to our expectations,” said S&P in a press release.

The outlook is negative.

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