S&P puts Digital Room on watch

S&P said it placed its ratings on Digital Room Holdings Inc., including the B- issuer credit rating, on CreditWatch with negative implications.

In response to the Covid-19 pandemic, governments have placed restrictions on the operations of nonessential businesses, and that will hinder Digital Room’s sales of marketing, promotional and packaging products to small and midsize businesses, S&P said.

“While the extent and duration of the impact on print and on DRI's finances are uncertain, we believe EBITDA losses and the resulting decline in cash flow from reduced print demand will likely be substantial and challenging to fully offset with cost cuts,” S&P said in a news release.

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