Belfor Holdings Inc. Acquired by American Securities
Issuer credit rating downgraded to "B"
NEW YORK (S&P Global Ratings) Feb. 7, 2019--S&P Global Ratings today took the rating actions listed below. The downgrade reflects the increased leverage, to about 4.5x over the next 12 months from about 2.7x, and S&P Global Ratings' expectation that aggressive financial policy decisions from the new ownership could increase leverage further. These decisions could take the form of future growth initiatives, acquisitions, or shareholder rewards.
The stable outlook reflects our expectation that adjusted debt to EBITDA will remain between 4x to 6.5x; that future operating trends should be relatively predictable; and that debt levels should be manageable even with potential deterioration in operating trends or aggressive financial policy decisions from the financial sponsors.