S&P downgrades MRO

S&P said it lowered all of the ratings on MRO Holdings Inc. to B+ from BB- and removed them from CreditWatch.

MRO Holdings has completed its debt-financed dividend and refinancing, which will result in deterioration in credit metrics, the agency said.

The ratings reflect the company's aggressive financial policy, S&P said.

The proposed increase in debt should be somewhat offset by continued growth in its earnings, but will cause its debt-to-EBITDA ratio to weaken to the 4.8x to 5.2x range in 2019, from 3.8x in 2018 and a previous expectation of about 3x, the agency said.

The stable outlook considers an expectation that credit metrics will weaken following the transaction, but then begin to improve as revenue and earnings increase due to strong demand utilizing the recent expansion in capacity, S&P said.

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