S&P revises Omnitracs view to negative

S&P said it revised the outlook for Omnitracs Holdings LLC to negative from stable and affirmed the B ratings on the company and its senior secured term loan and revolver.

“The negative outlook reflects our expectation that Omnitracs will face significant near-term pressure on revenues and EBITDA margins due to a weaker demand environment and ongoing growth investments. This should result in elevated leverage at around 9x in fiscal 2020, while FOCF is further affected by net working capital outflows due to an inventory buildup,” S&P said in a press release.

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