Fitch raises Owens & Minor

Fitch Ratings said it upgraded Owens & Minor Inc.’s senior secured debt to BB+/RR2 from BB/RR1, citing its revised corporate recovery ratings and instrument criteria on April 9.

The agency also removed the ratings from under criteria observation.

“Instrument ratings and RRs for OMI's debt instruments are based on Fitch's newly introduced notching grid for issuers with BB category long-term IDRs. Category 1 first liens, which are assigned RR1 ratings are reserved for first liens of U.S.-based borrowers, which do not have any of the limitations in category 2 on a current or projected basis,” the agency said in a press release.

The first-lien debt is structurally subordinate to OMI’s accounts receivable securitization facility. “Therefore, the secured debt is considered category 2 and receives an RR2 rating (recovery of 71%-90%),” Fitch said.

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