S&P rates Carestream loan BB-

Standard & Poor's said that it assigned a BB- issue-level rating to Carestream Health Inc.'s proposed new $2 billion senior secured credit facility. The recovery rating is 2, indicating the expectation of substantial (70%-90%) recovery in the event of a default scenario.

S&P also affirmed Carestream's B+ corporate credit rating.

The outlook is stable.

The proceeds will be used to refinance existing debt and pay a $200 million dividend to sponsor Onex Corp.

The ratings on Carestream reflect the expectation that the company is likely to maintain its operating margin of around 20% despite the challenging long-term outlook for the analog medical imaging industry, S&P said.

The ratings consider the firm's weak business risk profile and aggressive financial risk profile, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.