S&P downgrades Envigo

S&P said it lowered the long-term corporate credit rating on Envigo Holdings Inc. to CCC+ from B-.

The outlook is negative.

At the same time, the agency lowered its issue-level rating on its first-lien debt to B from B+. The 1 recovery rating reflects an expectation for very high (90%-100%; rounded estimate: 95%) recovery in the event of a payment default.

The agency also lowered its issue-level rating on the second-lien debt to CCC- from CCC. The 6 recovery rating reflects an expectation for negligible (0%-10%; rounded estimate: 0%) recovery.

S&P withdrew the issue-level ratings on proposed senior secured term loans related to the terminated Avista transaction that were never placed.

The agency said the action reflects lowered expectations for 2018 and 2019 sales and tighter liquidity from the use of cash related to the cybersecurity incident and business disruption.

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