S&P nicks Numotion

S&P said it lowered its ratings for NMN Holdings III Corp. (Numotion) and its first-lien debt to B- from B. The recovery rating on the debt remains at 3.

“The downgrade reflects our expectation for continued supply-chain challenges and delays in Numotion's ability to service its record-high backlog, resulting in cash-flow deficits and tighter liquidity. In 2021, Numotion's S&P Global Ratings-adjusted EBITDA margin, leverage, and reported FOCF were significantly weaker than our previous expectations due to supply chain challenges, inflation, and labor difficulties,” the agency said in a press release.

“While we expect Numotion's orders intake to increase for the remainder of 2022 as patients continue demanding its services to maintain mobility, we believe supply-chain issues could still impair the company's ability to fulfill its backlog,” S&P added.

The outlook is stable.

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