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On December 9, 2020, S&P Global Ratings lowered its issuer credit rating on URS Holdco Inc. (United Road Services) to CCC+ from B- and its senior secured debt rating to CCC+ from B-. The downgrade reflects the Company’s significant earnings decline in 2020 and its weakened credit metrics, according to the ratings agency. Moreover, URS derives about 90% of its revenue from its new and used light-vehicle segments, which have experienced double-digit percent declines in their sales volumes this year due to the pandemic. This, in turn, has significantly weakened the Company's revenue and EBITDA. Also, the Company’s negative outlook reflects weakened credit metrics in 2020 and expectation that its leverage will remain elevated over the next 12 months, which entail some downside risk if its earnings are weaker than S&P Global anticipates.
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