S&P lowers Guidehouse view to negative

S&P said it affirmed the B issuer credit rating on Guidehouse LLP and revised the outlook to negative from stable.

The agency also said it affirmed the B rating on the company's first lien-debt facility, including the $315 million term loan and $50 million revolver.

The 3 recovery rating is unchanged.

S&P also said it affirmed the CCC+ rating on the company's $105 million second-lien term loan.

The 6 recovery rating is unchanged.

Since separating from its former parent company, Guidehouse's revenues and earnings have been lower than expected, resulting in credit ratios worse than previously forecast, S&P said.

The agency said it expects ratios to improve over the next six- to 12-months.

The negative outlook reflects an expectation that the company's debt-to-EBITDA ratio will remain higher than 7x in 2019 because of operational difficulties before improving in 2020, S&P said.

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