S&P changes Advantage Sales view to negative

S&P said it revised its outlook on Advantage Sales & Marketing Inc. to negative from stable and affirmed its B issuer credit rating.

At the same time, the agency affirmed the B issue-level rating on the $200 million first-lien revolving credit facility and $2.5 billion first-lien term loan maturing in 2021. The 3 recovery rating reflects an expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in the event of a payment default.

S&P also affirmed the CCC+ rating on the $760 million second-lien term loan maturing in 2022. The 6 recovery rating reflects an expectation for negligible (0%-10%; rounded estimate: 0%) recovery in the event of a payment default.

“The outlook revision reflects the potential for a lower rating over the next few quarters if Advantage cannot stabilize profitability, resulting in further leverage and free cash flow deterioration,” the agency said in a news release.

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