The long-awaited cuts should make it easier for CCC rated companies to access debt capital markets rather than filing for bankruptcy, but some feel high-yield bonds are currently overvalued.
Borrowing costs have become compelling, as markets are already pricing in expectations for reduced interest rates. And several external factors could reverse that trend.
The company expects its debt-to-EBITDA ratio to edge higher when it closes on an acquisition in about 18 months, but it has time to pay down debt before then.