S&P puts Carey on watch

Standard & Poor's said it placed its ratings on Carey International Inc., including its CCC+ corporate credit rating, on CreditWatch with negative implications due to the agency's increasing concerns regarding the company's near-term liquidity position.

Carey's ratings reflect its highly leveraged capital structure and extremely constrained liquidity position, and the CreditWatch placement reflects the likelihood of a downgrade over the very near term if the company does not address its liquidity issues, the agency said. At more than 6x, the debt-to-EBITDA ratio is aggressive, and the company currently has very limited borrowing capacity under its credit agreement. In addition, it will face covenant issues shortly if it does not improve liquidity, S&P added.

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