Moody's may downgrade Advantage Sales

Moody's Investors Service said it placed the ratings of Advantage Sales & Marketing Inc. on review for downgrade, including the company's B2 corporate family rating, B2-PD probability of default rating, B1 senior secured bank credit facilities ratings and Caa1 senior secured second-lien term loan rating.

The review for downgrade reflects the high level of uncertainty around Advantage's ability to improve its free cash flow generation to a level that is supportive of its B2 corporate family rating given the belief that industry demand and margin headwinds are likely to continue in 2019, Moody's said.

Up until 2018, Advantage managed to buck industry headwinds and outperform its direct peers by continuing to drive organic revenue and EBITDA growth, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.