S&P pares MyEyeDr.

S&P said it lowered its ratings on MED ParentCo. (MyEyeDr.) and its revolver and term loan to CCC+ from B-. The 3 recovery ratings on the loans are unchanged.

MED ParentCo failed to meet the agency expectations while posting continuing free cash flow deficits, S&P said.

“MED ParentCo's debt-funded acquisition strategy and constrained S&P Global Ratings-adjusted EBITDA margin has led to substantially high S&P Global Ratings-adjusted leverage. We expect leverage to remain high in the near term due to the constrained EBITDA and increased debt from revolver usage,” the agency said in a press release.

However, S&P noted it sees the issuer gradually improving its leverage by stopping acquisitions and expanding its EBITDA base as it integrates the acquisitions and improves operating margins.

The outlook is negative.

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