Altegrity Gets Fresh Funding
September 2, 2014
Could someone please explain why it is a good idea to pay old debt off with new debt? While there might be a lower interest rate or more time to pay off the loans, it seems Altegrity needs to cut its losses before things get worse for it. BizJournals.com describes Altegrity’s financial state in the article, “Altegrity, USIS’ parent, Remains Buried In Billions In Debt” (sic).
You might recognize Altegrity as the parent company of USIS, which performs background checks for the federal government and is currently under a fraud investigation. The fraud tied with debt places the company in a bad spotlight. According to Standards and Poor’s Financial Services, LLC anyone who gives them a loan only stands to recover 10 percent of the funds if they are lucky.
This does not sound good either:
“And while extending the debt maturities provides ‘a modestly improved capital structure and liquidity profile,’ Altegrity remains on shaky ground to S&P. Its corporate rating of ‘CCC+’ from the ratings agency means it has “very weak financial security characteristics, and is dependent on favorable business conditions to meet financial commitments.” That mirrors the Caa2 rating from Moody’s Investors Service Inc., which a month ago called Altegrity’s debt profile ‘unsustainable.’”
Even worse is that the US government has Altegrity’s fate in its hands. The only news for Altegrity is bad. While we do not give financial advice, in this case, do not invest with this company. Next year does not look good for them at all.
Whitney Grace, September 02, 2014
Sponsored by ArnoldIT.com, developer of Augmentext
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Altegrity Gets Fresh Funding : Stephen E. Arnold @ Beyond Search