S&P changes CDRH outlook

S&P said it affirmed its B- corporate credit rating on CDRH Parent Inc. and revised the outlook to negative from stable.

At the same time, the agency affirmed the B- rating on the company's secured debt. The recovery rating remains 3, indicating an expectation for average (50%-70%; rounded estimate: 50%) recovery for lenders in the event of payment default.

S&P also affirmed the CCC rating on the company's senior secured second-lien term loan. The recovery rating remains 6, indicating an expectation for negligible (0%-10%; rounded estimate: 0%) recovery.

The agency said the outlook revision follows a year of mixed operating performance.

“Our negative outlook on CDRH reflects a view that the company has little margin for error in 2018, given our assessment that the company meeting or exceeding our current base case will be very important to its successfully refinancing its revolver in 2018 before it becomes a current maturity,” S&P said in a news release.

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