S&P lifts Medpace Holdings

S&P said it raised its corporate credit rating to BB- from B+ on Medpace Holdings Inc. The outlook is stable.

At the same time, S&P raised the issue-level rating on the company’s secured debt to BB from B+. The two-notch upgrade reflects the higher corporate credit rating as well as S&P’s expectation for lower secured debt under a default scenario. As a result, S&P said it revised the recovery rating on the senior secured facility to 2 from 3, indicating expectations of substantial (70% to 90%; lower end of the range) recovery in a payment default.

“Our rating action follows Medpace's successful IPO, which results in much lower leverage and very strong pro forma cash flow relative to debt. Following the IPO, we are more confident that the company will maintain low leverage,” S&P said in a news release.

© 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.