S&P slashes MVK

S&P said it lowered its ratings on MVK Intermediate Holdings LLC and its senior secured credit facility to CCC- from CCC+ and put the ratings on CreditWatch with negative implications.

“The downgrade and CreditWatch negative placement indicate MVK has an increased likelihood of default amid a likely weakened liquidity position.

“We have not received confirmation that it secured additional liquidity given the delay in audited financial statements. In addition, indicative pricing on the company's term loan has dropped to about 50 cents on the dollar from the 70 cents area in recent months,” S&P said in a statement.

The negative watch reflects the possibility of a downgrade if MVK restructures its debt, possibly constituting a selective default. “While unlikely, we could resolve our CreditWatch without a downgrade if we receive the necessary documentation that indicates MVK has improved its liquidity position without a selective default,” the agency said.

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