Bad news for Boardriders Inc., the apparel company. A few weeks after an earlier article by the BDC Credit Reporter triggered by a downgrade by Moody’s, here comes another ratings blow- from S&P. The company’s rating has been lowered to CCC+ from B. The outlook is Negative. What caught our attention was this remark: that Boardriders would “likely need additional liquidity to meet its obligations over the next 12 months; otherwise a default might become highly likely,”
We had already downgraded the company in our database on May 11, 2020 to CCR 4 from CCR 3. Now we are also adding the company to our Weakest Links list, based on S&P’s comments and the still difficult market conditions. As before, the only BDC with exposure is Great Elm Corporation (GECC), whose $8.8mn invested at cost in the debt of the company was valued at $8.0mn as of March 31 2020.