Varsity Brands Rating Lowered to Junk Status
The shutdown of schools is expected to cause a material decline in revenue and profit of the parent of BSN Sports, which also runs Varsity Spirit and Hercules Achievement, causing S&P to lower its rating on the company to CCC+ from B-. The outlook is also negative, reflecting the potential for a lower rating over the next 12 month with a risk of a near-term default. The ratings agency also suggested that, even when schools reopen, Varsity will face headwinds because of social distancing that will reduce demand for its products and the possibility that states may cut school funding ... Log in to view full article.