The ratings agency now classifies its senior secured term loan for $1.6 billion to Caa1, which it defines as “poor standing” and “subject to high credit risk” from B3 which is defined as speculative and subject to high credit risk. The downgrade reflects the slower than expected recovery rate as a result of the recent increase in the revolver, but it adds that the company has good liquidity as a result of the increase and still has the flexibility to turn around its financial performance. It currently has $1.644 billion of the total $1.825 billion term loan outstanding.

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