On February 21, 2018, S&P Global Ratings lowered its corporate credit rating to CCC- from CCC on Gibson Brands, Inc. and its $375 million senior secured notes due August 2018 were lowered to CCC- from CCC. According to S&P Global, the downgrade reflects the increased likelihood that Gibson Brands could experience a near-term liquidity shortfall and default on its debt if lenders choose to accelerate debt payments. S&P further states that the Company’s operating performance continues to be weak as it works through the lingering effects of the early 2017 implementation of rosewood regulations, as well as reduced pay terms from suppliers. Read more on distressed companies.
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