S&P changes Immucor outlook to negative

S&P said it affirmed its CCC+ corporate credit rating on Immucor Inc. and revised the outlook to negative from stable.

At the same time, the agency affirmed the B- issue-level rating on the company's senior secured facilities. The recovery rating is 2, reflecting an expectation for substantial (70%-90%; rounded estimate: 80%) recovery in the event of default. It also affirmed the CCC- issue-level rating on the senior unsecured notes. The recovery rating is 6, reflecting an expectation for negligible (0%-10%; rounded estimate: 5%) recovery in the event of a payment default.

S&P said the affirmation reflects its expectation that, despite ongoing profitability pressure and persistently high leverage, Immucor will be able to cover its operating expenses and annual debt amortization requirements from a modest cash flow generation over the next 12 months as a result of a slight uptick in revenue growth.

At the same time, the negative outlook reflects the agency’s uncertainty about Immucor's ability to refinance or amend its senior secured term loan given an August 2018 maturity date and persistently weak credit measures.

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