S&P revises Owens & Minor view to stable

S&P said it revised the outlook for Owens & Minor Inc. to stable from negative and affirmed the company’s B- issuer rating.

“Default risk has diminished significantly. Since our March downgrade of OMI, its credit profile improved amid the Covid-19 pandemic given its status as one of the few Americas-based PPE manufacturers. Our initial negative outlook reflected the refinancing risk for its July 2022 maturities (revolver and term loan A) given the lackluster top-line and cash flow projections. However, OMI’s financial outlook improved since then as it ramped up its higher-margin manufacturing business, which more than offset pressure from the lower-margin medical distribution business,” S&P said in a press release.

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