Fitch cuts Owens & Minor, rates loans

Fitch Ratings said it downgraded Owens & Minor, Inc.’s (OMI) long-term issuer default rating to B+ from BB.

The action resolves the rating watch negative that examined the final financing plan for Owens & Minor’s recently completed acquisition of the S&IP business of Halyard Health, Inc. and the outlook for Owens & Minor’s core business.

The outlook is stable.

Fitch also assigned a new long-term issuer default rating of B+ to O&M Halyard, Inc. along with new BB-/RR3 senior secured ratings to new term loans at O&M Halyard, Owens & Minor Distribution, Inc., Owens & Minor Medical, Inc., Barista Acquisition I, LLC and Barista Acquisition II, LLC.

Fitch said Owens & Minor holds a strong share of the steady market for the distribution of medical-surgical (med-surg) products to U.S. acute care providers. The agency believes the company’s strategy, which is based on organic and acquisition growth, positions it to grow modestly over the forecast period through 2021.

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