S&P lowers EOS Buyer view to negative

S&P said it revised the outlook to negative from stable and affirmed the B- issuer rating on GC EOS Buyer Inc.

The agency also said it affirmed the B- rating on the company's first-lien term loan. The 4 recovery rating is unchanged.

S&P also said it affirmed the CCC rating on the company's second-lien term loan with a 6 recovery rating.

GC EOS Buyer's credit metrics have weakened significantly over the past few months as weaker margins from tariffs and higher labor costs, along with working capital needs, have caused negative free cash flow, the agency said.

The negative outlook reflects the increased risk that margins remain weak and cash flow remains negative for multiple quarters, hurting its liquidity, S&P said.

The company now faces these heightened risks as it works to offset higher labor costs and tariffs and integrates the Remy acquisition, the agency said.

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