S&P: Orthofix outlook negative

Standard & Poor's said it revised the outlook on Orthofix International NV to negative from stable and affirmed the BB- corporate credit rating.

The outlook revision follows the company's results for the quarter ended Sept. 30, the agency said.

The rating is based on the company's tight financial covenants, highly competitive markets, challenges in restructuring its Blackstone facilities, margin pressures, working capital demands and the recent shortfall of operating cash flow, according to S&P.

These factors are offset partially by Orthofix's diverse revenue stream, solid niche positions and its appropriate financial risk profile for the current rating, the agency said.

Total lease adjusted debt-to-EBITDA ratio is at about 3.2x.

© 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.