S&P: Prospect Medical still on watch

Standard & Poor's said the B- counterparty credit rating on Prospect Medical Holdings Inc. remains on CreditWatch with negative implications.

On Jan. 17, the agency lowered the rating to B- from B+ and placed it on CreditWatch negative based on adverse business development, which was expected to result in diminished pro forma cash flow and earnings.

S&P said it believes that Prospect might not be in compliance with certain financial covenants for the periods ended Sept. 30, 2007, Dec. 31 and March 31. Each of these events constitutes technical default on its outstanding loans.

According to management, Prospect's lending group has elected to temporarily forebear its enforcement rights under the existing credit facility, the agency said.

S&P said it believes Prospect is generating adequate cash flow to service its debt obligations and conduct operations in the near term.

© 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.