S&P trims TecoStar Holdings

S&P said it trimmed the ratings for TecoStar Holdings Inc.’s issuer and first-lien term loan to CCC+ from B- and its second-lien loan due 2024 to CCC- from CCC. The recovery ratings on the debt are unchanged.

“The downgrade reflects our view that TecoStar will continue to face heightened operational challenges in 2022 and require favorable operating conditions to sustain its capital structure. Although we forecast an increase in orthopedic procedures and a recovery in orders from the company's main customers, we anticipate that higher-than-usual employee turnover and supply chain challenges will continue to pressure its operating margins and cash flow generation,” the agency said in a press release.

S&P said it forecasts the company to generate a free cash flow deficit of over $30 million in 2022.

The outlook is negative.

© 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.