S&P alters Zotec view to negative

S&P said it changed its outlook for Zotec Partners LLC to negative from stable and affirmed the B- issuer rating. The debt ratings are unchanged.

“The negative outlook reflects elevated refinancing risk as well as risk to our expectations that the company will generate positive cash flow in 2023. Zotec's margins have fluctuated for several years, temporarily elevated in 2021 due in part to a vaccination management contract and compressed in 2022 due to significant start-up expenses for a contract,” S&P said in a press release.

S&P said it forecasts cash flow of about $10 million for Zotec in 2023.

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