S&P downgrades LifeScan

S&P said it lowered its issuer credit rating on LifeScan Global Corp. to CCC+ from B-.

Accordingly, the agency also lowered its issue-level ratings on the company's super-priority revolver to B from B+, on the company's first-lien debt to CCC+ from B- and on its second-lien debt to CCC from CCC+.

S&P also placed LifeScan on CreditWatch negative, which reflects refinancing risk that stems from the company's upcoming debt maturities.

LifeScan continues to face headwinds in its core business, and S&P expects LifeScan’s revenue to continue declining at a mid- to high-single-digit rate. Additionally, S&P expect free cash flow to remain below $100 million in 2023, a level the agency deems “unsustainable” for the company's capital structure given its $103 million annual debt amortization.

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