S&P downgrades Greenway Health

S&P said it lowered the ratings for Greenway Health LLC and its senior secured revolver to B- from B. The recovery rating remains 3, indicating expectations for meaningful (50%-70%; rounded estimate: 50%) recovery in a default.

“The downgrade reflects our expectations that EBITDA will be lower and for continued operational challenges. We expect EBITDA to be much lower than our prior expectation of about 25%, after bottoming out in 2019, then improve modestly in 2020 to about 16%. The additional costs and reputation risk may also put pressure on Greenway's ability to win new customers and invest in product innovation, further jeopardizing effective business operations,” said S&P in a press release.

The outlook is negative.

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