On March 21, 2018, S&P Global Ratings lowered its corporate credit rating on CPI Card Group Inc. to CCC+ from B- and its senior secured credit facility rating to CCC+ from B-. According to S&P Global, the downgrade reflects S&P’s view that CPI’s capital structure is unsustainable at current levels of EBITDA. Performance was weaker than S&P expected due to lower card volume demand and further pricing declines. However, S&P does not anticipate a default scenario over the next 12 months given that S&P believes liquidity availability will be sufficient to absorb the expected negative discretionary cash flow. Read more on distressed companies.
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