S&P revises Holley Purchaser view to negative

S&P said it revised the outlook for Holley Purchaser Inc. to negative from stable, reflecting a potential covenant breach.

The negative outlook reflects the increased risk EBITDA could be much worse than expectations, leading to leverage higher than required by its covenants. It also reflects the risk cash flow will remain negative for multiple quarters, hurting liquidity. “This could occur if sales and margins contract more than our current expectations for an extended period amid weaker consumer demand resulting from Covid-19,” said the agency in a press release.

S&P also affirmed the company’s B- rating.

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