S&P upgrades Mednax

S&P said it upgraded its ratings for Mednax Inc. (now Pediatrix Medical Group) and its senior unsecured notes due 2030 to BB- from B+. The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in default.

“We expect Mednax will retain, or possibly further lower debt leverage should EBITDA continue to improve. We expect total births at the hospitals Mednax operates NICUs to increase annually in the low-single-digit percentages each of the next several years. Although birth trends continue to decline primarily from those in their late-teens and early 20s, a greater concentration of pregnancies may be considered high-risk as the average age at the time of pregnancy increases,” the agency said in a press release.

S&P said it forecasts Mednax’s adjusted debt/EBITDA will be 3x-3.25x in 2022 and 2023.

The outlook is stable.

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