S&P lowers New Millennium

S&P said it lowered the corporate credit rating on New Millennium Holdco Inc. to CCC+ from B-, along with the rating on its senior secured term loan to CCC+ from B-.

The recovery rating on this debt remains at 4, indicating 30% to 50% expected default recovery.

The outlook is negative.

The downgrades follow very weak second-quarter operating results and negative reimbursement trends, which are expected to cause EBITDA to decline meaningfully below fixed charges over the next two years, S&P said.

While the agency said it believes the company’s very substantial cash balance affords it an extended period of time to try to improve operations, the downgrades consider that the company won’t be able to support the current level of debt over the long term without favorable developments.

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