OREANDA-NEWS. S&P Global Ratings said today that it has lowered its corporate credit rating on Dayton Superior Corp. to 'B-' from 'B'. The outlook is negative.

"The downgrade is based on Dayton's unfavorable debt maturity profile and its major upcoming debt maturity in December 2017, which has increased its refinancing risk and raised the prospect that the company will have insufficient liquidity to repay the debt if is not refinanced prior to maturity," said S&P Global credit analyst Vania Dimova.

The negative outlook on Dayton reflects the increased risk that the company will need to undertake a refinancing and the fact that we could revise our assessment of its liquidity to weak in December 2016 if its term loan is not refinanced before it becomes current on Dec. 28, 2016.

We could lower our ratings on Dayton if the company is unable to refinance its debt by December 2016. We could also lower the ratings if weaker-than-expected market conditions, operational problems, or increased debt to fund shareholder returns or growth initiatives causes its leverage metric to exceed 8x.

We would likely upgrade the company if it refinances its December 2017 term loan maturity with a multi-year facility, assuming Dayton's operating performance remains consistent with our forecast and its adjusted debt leverage remains below 8x (including the preferred equity as debt).