Standard & Poor’s has downgraded Boardriders’ debt rating to CCC+ from B- after the company reported that it recorded “severely negative” Ebitda on 40 percent lower revenues for the second quarter ended on April 30, indicating that it may need additional liquidity to meet its obligations. Ebitda is expected to remain negative for the full year ending on Oct. 30, making it difficult to pay annual interest expenses of $40-50 million. S&P said that the company is likely to need to raise more debt or equity, and that its risk of default within a year has increased. Boardriders’ main shareholder, Oaktree, has indicated that it will support it if necessary, and S&P said it believes that it will return to positive Ebitda in the next fiscal year. The parent company of Quiksilver, Roxy and other brands already suffered from negative cash flow prior to the coronavirus outbreak due to restructuring costs linked to Billabong’s integration. By the end of May, the company had only about $100 million in cash and $15 million on its revolving credit facility. S&P said that the need for additional cash may lead Boardriders to cut it planned investments in growth initiatives. The agency may consider a more positive rating if the company can generate positive cash flow while maintaining an adequate level of liquidity.