Moody’s downgrades Upstream Newco

Moody’s Investors Service said it downgraded the ratings of Upstream Newco, Inc., including the corporate family rating to B3 from B2, the probability of default rating to B3-PD from B2-PD, the senior secured first-lien credit facility rating to B2 from B1, and the senior secured second-lien credit facility rating to Caa2 from Caa1.

“The downgrade of the CFR to B3 reflects Upstream’s elevated financial leverage at the B2 level that is unlikely to improve below our former downgrade triggers and expected weakening of liquidity over the coming quarters due to the coronavirus pandemic,” said Moody’s in a press release.

The agency revised the outlook to negative from stable. “The change of outlook to negative reflects Moody’s view that physical therapy companies like Upstream will experience a significant drop in volumes over the coming weeks due to declines in demand and appointments,” Moody’s said.

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