S&P cuts Cook & Boardman

S&P said it lowered its ratings on Cook & Boardman Group LLC and its first-lien term loan, with $367 million outstanding, to B- from B. The recovery rating remains 3.

“Cook & Boardman's debt leverage increased to slightly above 9x in 2021, up from 8.5x in 2020 and we expect it to improve toward 7x in 2022,” the agency said in a press release.

“The company has a strong backlog and good visibility into future earnings given that product installation typically occurs toward the end of a project. However, the backlog can take up to 18 months to generate earnings given that there is a long lag between winning bids and execution. In addition, high debt balances offset the improvement and there is little cushion if commercial construction end markets do not improve as we expect in 2023,” S&P said.

The outlook is stable.

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