The downgrade is based on a number of factors, including GSH’s decline in absolute liquidity below projections and its weak operating cash flow in the first half of fiscal year 2015.
The rating outlook remains negative, reflecting GSH’s challenges in achieving targeted operating improvement in FY 2015 and 2016 and the risk of further liquidity decline if improvement is not made. In addition, GSH is undergoing a leadership transition, which adds uncertainty to the outlook.
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