S&P trims KCIBT

S&P said it lowered the ratings on KCIBT Holdings LP and its first-lien debt to CCC+ from B- and the rating on its second-lien debt to CCC from CCC+. The 3 recovery rating on the first-lien debt and 5 recovery rating on the second-lien debt remain unchanged.

“The downgrade reflects our view that KCIBT's capital structure is unsustainable and its deteriorating liquidity position exposes it to further downside risk. The company is directly affected by the immediate and potentially prolonged decline in demand for travel visa services (about 77% of KCIBT's total revenue) due to the spread of the coronavirus,” said S&P in a press release.

The outlook is negative.

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