S&P pulls Upstream from watch

S&P said it removed its ratings for Upstream Newco Inc. (Upstream Rehabilitation Inc.) from CreditWatch with negative implications, where it placed them on March 31.

The agency affirmed its B ratings on Upstream and its first-lien senior secured revolver and term loan with a 3 recovery rating. S&P also affirmed the CCC+ and 6 recovery rating on its second-lien secured term loan.

Upstream received $10 million in grants from the U.S. government, intended to compensate health care providers for lost revenue due to the pandemic’s effects, as part of the Coronavirus Aid, Relief, and Economic Security Act. The company also received $14 million in Medicare advance payments.

“We no longer view Upstream’s near-term liquidity as a key risk to its credit quality. The company materially improved its liquidity position since we placed our ratings on CreditWatch negative,” S&P said in a press release.

S&P said it forecasts Upstream will generate positive free cash flow before growth capital spending and forecast leverage of about 6x in 2021.

The outlook is stable.

© 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.