S&P: Ortho-Clinical Diagnostics units debt CCC

S&P said it assigned its CCC issue-level rating and 6 recovery rating to the proposed senior unsecured notes that will be co-issued by Ortho-Clinical Diagnostics Bermuda Co. Ltd.’s (Ortho-Clinical) subsidiaries Ortho-Clinical Diagnostics SA and Ortho-Clinical Diagnostics Inc. The 6 recovery rating indicates an expectation for negligible (0%-10%; rounded estimate: 5%) recovery in the event of a payment default.

Ortho-Clinical will use the proceeds to partially refinance its senior unsecured notes due 2022. S&P’s ratings on the company’s debt remain unchanged.

“Our B- issuer credit rating on parent Ortho-Clinical continues to reflect our expectation that the company’s leverage will remain high at more than 7.5x while its discretionary cash flow generation stays minimal at between $30 to $40 million in 2019 and 2020,” said S&P in a press release.

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