S&P dials down One Call view to negative

S&P said it changed its outlook for One Call Corp. to negative from stable and affirmed the B- ratings on the issuer and its first-lien term loan and revolver. The recovery rating on the loan and revolver remains 3, indicating meaningful recovery (50%-70%; rounded estimate: 60%) in default.

“As a result of the greater-than-anticipated revenue and earnings declines, credit protection measures have similarly deteriorated beyond expectations. Specifically, S&P Global Ratings-adjusted leverage excluding preferred was 10.9x as of Sept. 30, 2022 (15.6x with preferred), from 8.7x at year-end 2021 (12.5x with preferred).

“EBITDA coverage excluding preferred equity and second-lien payment-in-kind (PIK) interest (both of which are non-cash) was 1.9x as of the last 12 months ended Sept. 30, 2022, from over 2x at year-end 2021, while coverage including the second-lien PIK interest (but also excluding preferred equity servicing) was 1.1x,” the agency said in a press release.

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