S&P cuts NMC Health

S&P said it downgraded NMC Health plc to CCC- from BB because the agency believes a default appears inevitable within six months.

On Monday, the company asked its lenders for their continued support and an informal standstill in relation to its facilities. The company made this request after findings that NMC's principal shareholders own less than 30% of NMC's issued share capital, which may trigger change-of-control provisions.

“The downgrade reflects our view that there is an increased risk of breaches of warranties and acceleration of payments under the senior facilities, and a trigger of cross-default for the other outstanding facilities. The risk is exacerbated by the company's announcement of discrepancies in audited financial statements and the board simultaneously removing the CEO,” said S&P in a press release.

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