S&P boosts Owens & Minor

S&P said it raised Owens & Minor Inc.’s issuer rating to BB-, its revolver and 2024 senior secured notes to BB- and its 2029 senior unsecured notes to B.

The agency said it raised the rating in consideration of an improved competitive position, healthy 2022 EBITDA guidance, improving long-term visibility and a clearer capital allocation policy.

“We believe that OMI will generally maintain S&P Global Ratings-adjusted leverage in the 3x-4x range over the long term. Since the beginning of 2020, the management team has reduced its total debt to under $1 billion from nearly $1.6 billion, leading to company-defined leverage of 2x as of the first quarter of 2021,” S&P said in a press release.

The outlook is positive.

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