S&P trims Medical Depot, ratings on CreditWatch negative

S&P said it lowered the ratings for Medical Depot Holdings Inc. and its first-lien issue-level rating to CC from CCC on a restructuring agreement the agency considers a distressed exchange.

S&P cut the second-lien issue rating to C from CC. Recovery ratings for the first- and second-lien debt are unchanged.

“We view this transaction as a distressed exchange because by revising terms, the lenders are agreeing to accept less value than originally promised for the company’s debt. In addition, in light of the company’s weak performance over the past year and its depleted liquidity, we consider this offer to be distressed, rather than opportunistic,” said S&P in a news release.

The agency placed the company’s ratings on CreditWatch with negative implications.

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