S&P hikes HealthChannels

S&P said it raised HealthChannels Intermediate HoldCo LLC’s issuer rating to CCC from SD, selective default. The D issue-level rating on the company's first-lien term loan with $333.2 million outstanding is unchanged until it believes the risk of more distressed debt repurchases is remote, following the company's multiple below-par repurchases of the debt.

“The CCC rating reflects our expectations that HealthChannels may struggle to refinance its $385 million ($333.2 million outstanding) first-lien term loan due in April 2025 in a challenging operating and macro environment. Although many emergency department volumes have returned to near pre-pandemic levels, HealthChannels has not rebounded, partly due to continued headwinds to the financial conditions in emergency medicine,” S&P said in a press release.

The low rating also reflects concerns that HealthChannels will make more below-par debt buybacks, the agency explained.

The outlook is negative.

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