S&P downgrades MAI Holdings

S&P said it downgraded MAI Holdings Inc. and its senior secured notes to CCC- from CCC. The 4 recovery rating indicates S&P’s expectation for average (30%-50%; rounded estimate: 30%) recovery of principal in the event of a payment default.

“The downgrade reflects our view that MAI could face difficulty meeting its debt obligations or pursue a debt restructuring within the next six months. Although MAI has been able to secure incremental financing over the previous 12 months, we believe the company will have limited financial flexibility to fund operations and service its cash interest burden of about $14 million,” S&P said in a press release.

The outlook is negative.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.