MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said its 'CCC' ratings and negative outlook on Best Brands Corp. remain unchanged after the American bakery product maker's disclosure that it received a third amendment and waiver to its credit facility which relaxed covenant levels and increased pricing, among other provisions.
Best Brands also completed a sale/leaseback transaction and applied proceeds to debt reduction.
S&P said it still remains concerned about very limited covenant cushion over the next few quarters, and ongoing liquidity as peak revolver borrowing typically occurs in September-October. The ratings could be lowered if liquidity tightens and/or the company seeks another amendment, the rating agency said. TFN.newsdesk@thomson.com ans COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
Best Brands also completed a sale/leaseback transaction and applied proceeds to debt reduction.
S&P said it still remains concerned about very limited covenant cushion over the next few quarters, and ongoing liquidity as peak revolver borrowing typically occurs in September-October. The ratings could be lowered if liquidity tightens and/or the company seeks another amendment, the rating agency said. TFN.newsdesk@thomson.com ans COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2008 AFX News
