Standard & Poors and Moody’s have both downgraded the credit rating of Boardriders, the parent company of Quiksilver, Roxy, Billabong and other action sports brands. S&P has reversed its outlook to negative based on results and guidance provided by the company to the rating agency. It feels that its operating cash flow will continue to be negative in 2020, but it doesn’t expect Boardriders to default on its loans, noting that its owners are in negotiations with lenders and may inject more liquidity to shore up the balance sheet. Moody’s is concerned that the group continues to burn cash but feels that it will be able to fulfill its bank covenants and maintain adequate liquidity thanks to synergy-related improvements in the gross margin over the next 12 to 18 months.