S&P boosts KCIBT

S&P said it upgraded the ratings on KCIBT Holdings LP and its first-lien debt facilities to CCC from SD and D, respectively. The agency also raised the second-lien debt’s rating to CC from D. The recovery ratings on the company's first and second-lien debt remain 4 and 6, respectively.

“Our CCC rating reflects our expectation that liquidity will continue to weaken over the next 12 months, thereby presenting risk of a shortfall or increasing the likelihood the company will undertake a new distressed restructuring or debt exchange within a year,” S&P said in a press release.

The agency noted the company’s cutting its workforce, obtaining two credit pact amendments that decreased cash interest and debt amortization payments and its equity sponsor injecting $55 million in cash.

However, S&P said it still expects a quarterly cash flow deficit of $1 to $8 million over the next 12 months.

The outlook is negative.

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