S&P pares One Call

S&P said it lowered its ratings for One Call Corp. and its first-lien debt to CCC+ from B-, citing substantially weaker credit metrics. The debt recovery ratings are unchanged.

“One Call ended 2022 with S&P-adjusted leverage of 12.8x (excluding preferred equity treated as debt), relative to 10.9x as of the prior quarter (the 12 months ended September 2022) and 8.7x at year-end 2021. The decline was primarily driven by lower revenue (8% decline for the year) and margins (S&P-adjusted EBITDA margins of 8.8% for 2022, from 11.6% in 2021).

“While we expected the company to experience weaker earnings and credit metrics related primarily to the partial insourcing of a key One Call client, the deterioration has been greater than anticipated on a combination of factors including inflationary wage and general cost pressures and elevated one-time costs related to the company's various operational initiatives,” S&P said in a press release.

The agency said it anticipates One Call will start growing again in 2023, but it will take time.

The outlook is stable.

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