S&P cuts Speedcast, changes view to negative

S&P said it downgraded Speedcast International Ltd. to B from B+, citing the company’s auditor concern on Speedcast’s future. The recovery rating on the senior secured debt is unchanged at 4, indicating average recovery prospects in case of a default.

“Material overdue payments to certain trade creditors have contributed to an additional funding requirement. The company's auditor noted that the funding uncertainty may cast doubt on the group's ability to continue as a going concern. In our opinion, delayed supplier payments are not included as debt in the group's covenant calculation and somewhat obscured its underlying financial position,” said S&P in a press release.

S&P placed Speedcast’s ratings on CreditWatch with negative implications.

Speedcast’s chairman and chief financial officer resigned together, raising questions about the effectiveness of the company’s governance structures, the agency said.

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