S&P changes Opal view to negative

S&P said it revised the outlook on Opal Acquisition Inc. (One Call Care Management) to negative from stable and affirmed its B- long-term corporate credit rating.

The agency also affirmed the B- debt ratings on the company's first-lien senior secured revolver due 2018 and term loan due 2020, with recovery ratings of 3, indicating an expectation for a meaningful (55%) recovery of principal in the event of a payment default.

S&P also affirmed the CCC debt rating on the 8 7/8% senior unsecured notes, with a 6 recovery rating, indicating an expectation for no recovery (0%) in the event of a payment default.

S&P said the negative outlook reflects the potential for a downgrade during the next 12 months. The agency expects flat to slightly lower total revenue and adjusted EBITDA in 2017, with potentially modest growth in 2018.

Adjusted EBITDA margins are likely to remain relatively stable at 11%-12% in 2017 and 11%-13% in 2018.

Given the company's substantial debt load, S&P expects its key credit metrics in 2017-2018 to remain very weak, with an adjusted debt-to-EBITDA ratio above 10 times, adjusted EBITDA cash interest coverage of 1.5 times to 1.6 times and EBITDA interest coverage of 1.4 times to 1.5 times.

© 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.