S&P ups Summit Health

S&P said it upgraded its ratings for WP CityMD Bidco LLC (Summit Health) and its first-lien term loan to B from B-. The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in default.

“Summit Health's revenue rose a robust 89% in 2020, reflecting the 2019 merger of CityMD and Summit Health along with significant demand for Covid-19-related testing and services at its CityMD's urgent care facilities. Although we expect Covid-19-related demand to moderate in the second half 2021 and 2022, we expect a continued solid rebound at the company's multispecialty unit as deferred office visits and some discretionary procedures return,” the agency said in a press release.

S&P said it estimates adjusted debt to EBITDA of between 5x-5.5x in 2021 and 2022 for Summit.

The outlook is stable.

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