S&P: Performance Sports Group Ltd. Corporate Credit Rating Lowered To 'CCC' Due To Weak Operations, Likely Covenant Default
At the same time, we lowered our issue-level ratings on the company's $450 million term loan due 2021 to 'CCC' from 'CCC+'. The recovery rating remains '4', indicating our expectation for an average (30% -50%) recovery in the event of payment default, at the lower half of the range.
"The downgrade reflects our view that PSG will likely experience a near-term liquidity shortfall or debt restructuring within the next 12 months," said S&P Global Ratings credit analyst Bea Chem.
As of Feb. 29, 2016, we estimate that the company had about $493.3 million of adjusted debt outstanding.
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