S&P downgrades Curvature

S&P said it lowered its issuer credit rating to CCC+ from B- on Curvature Inc. The outlook is stable.

At the same time, S&P lowered its issue-level rating on the company's $55 million revolving credit facility expiring 2022 and its $530 million first-lien term loan to CCC+ from B and revised the recovery rating to 3 from 2. The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 65%) in the event of payment default.

S&P also lowered its issue-level rating on the company's $175 million second-lien term loan to CCC- from CCC. The 6 recovery rating is unchanged, indicating an expectation for negligible (0%-10%; rounded estimate: 5%) recovery in the event of payment default.

“The downgrade reflects Curvature's continued weak operating performance below our expectations and profitability declines since its merger with SMS in February 2017 resulting in leverage around 13x as of June 30, 2018, negative FOCF, and weakening liquidity,” S&P said in a news release.

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