S&P turns Greenway view to negative

S&P said it revised Greenway Health LLC’s outlook to negative from stable and affirmed the B- long-term issuer rating.

“The rating action reflects our view of Greenway's challenging business prospects, rising interest rates, and a looming debt maturity. We think the confluence of these uncertainties increases the possibility that the capital structure is unsustainable. Our rating also reflects our base case expectation for 2022 of adjusted debt to EBITDA of around 11x to 12x and single-digit free cash flow, excluding the $26 million settlement payment, based on a single-digit revenue decline and 300 basis point compression in EBITDA margin,” S&P said in a press release.

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