On April 26, 2017, S&P Global Ratings revised its outlook on PaperWorks Industries Holding Corp. to negative from stable and affirmed its B- corporate credit rating and lowered its senior secured notes to CCC+ from B-. According to S&P Global, PaperWorks Industries recently reported tepid earnings guidance for fiscal-year 2017, with free cash flow expected to remain negative over the next 12 months. “Our negative outlook reflects sustained weakness in PaperWorks’ financial performance, negative free cash flows, and elevated credit levels,” said S&P Global credit analyst Daniel Lee. Further, over the past year, PaperWorks encountered several secular headwinds, including Coated Recycle Board (CRB) price contraction, declining sales volumes and tepid growth in the Company’s key consumer products end-market. Read more on distressed companies.