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S&P ups MedPointe outlook to stable, rates loan B
Standard & Poor's said it assigned a B rating with a recovery rating of 2 to MedPointe Healthcare Inc.'s proposed $135 million senior secured credit facility. The company's B corporate credit rating was affirmed.
The outlook was revised to stable from negative, reflecting recent improvement in sales performance of lead product Astelin, as well as the increased financial flexibility provided by the new credit facility.
S&P said the ratings reflect MedPointe's heavy reliance on the nasal spray antihistamine Astelin, increasing competitive threats to the franchise and weak credit protection metrics. These negative factors are only minimally offset by Astelin's growing sales.
Cash flows are expected to be minimal over the next two years, and debt to EBITDA will be more than 4x, the agency predicted.
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