S&P revises Magellan Dutch Bidco view to negative

S&P said it revised its outlook on Magellan Dutch Bidco BV to negative from stable and affirmed the B issuer credit and issue ratings on the company and its debt.

“We believe Netherlands-based home care services provider and medical devices distributor Mediq BV's holding company Magellan Dutch BidCo BV will experience slower than expected deleveraging, mainly due to inflation and potential cost restructuring initiatives, which will likely continue to impact EBITDA,” S&P said in a news release.

“We expect the company's S&P Global Ratings-adjusted debt to EBITDA to remain above 7x over the next 18–24 months, despite sound organic revenue growth and well executed operations. We also forecast EBITDA cash interest coverage of at least 2x and positive free operating cash flow (FOCF).”

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