S&P cuts Advantage Sales

S&P said it lowered its issuer credit rating on Advantage Sales & Marketing Inc. to B- from B.

At the same time, the agency lowered the issue-level rating on the company's senior secured first-lien debt to B- from B and the issue-level rating on its second-lien debt to CCC from CCC+. The 3 recovery rating on the first-lien debt and 6 recovery rating on the second-lien debt remain unchanged.

The outlook is negative.

“The downgrade reflects Advantage's very large debt maturity that will come due in about two years, the continued tough conditions faced by sales and marketing agencies, and – notwithstanding the recent profit improvement – the company's overall underperformance in 2018,” S&P said in a news release.

“Given the $2.5 billion debt maturity and the company's variable performance, we believe its medium-term default risk has increased.”

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