Fitch revises Medline view to negative

Fitch Ratings said it affirmed Medline Borrower, LP's long-term issuer default rating at B+ and revised the outlook to negative from stable.

“The outlook revision is primarily based on Fitch's expectation that Medline's EBITDA growth will be slower than anticipated, and, therefore, the company’s leverage may remain significantly above our prior expectations, which were set at gross leverage (gross debt/EBITDA) of 6x or lower by YE 2023,” Fitch said in a news release.

“In addition, leverage may remain higher for a longer period of time if the company elects to use FCF to make payments in 2022 and 2023 under a Management Performance Unit (MPU) Plan in lieu of reducing debt.”

Fitch said it also assigned a B+ IDR to Mozart Holdings, LP with a negative outlook. Mozart Holdings is the parent of Medline Borrower and the reporting entity of the consolidated financial statements.

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