Its rated as junk.

And if default risk rises, yes the value of those bonds will get crushed. But Id argue the value of equity will be more so - since they are not A) positive EBIT B) EBITDA

Those two numbers are variables that compose measures of default risk.

Calm your panties down. Kroll != S&P.

Yes, and there must be a reason they went with Kroll instead of someone else. It is possibly a bad reason, and we should by default be skeptical and assume such with the little information we have, until proven otherwise.