S&P places Agiliti on watch

S&P said it placed Agiliti Inc.’s B+ issuer rating on CreditWatch with negative implications.

“The CreditWatch placement follows Agiliti's announcement that THL would acquire all outstanding shares of its common stock. A take-private transaction by a financial sponsor will likely result in a more aggressive financial policy and could lead to S&P Global Ratings-adjusted leverage rising above 5x, the downside trigger for our B+ rating on Agiliti. Funding this transaction using additional debt could also weaken cash flow due to additional interest expense,” S&P said in a press release.

The agency said it aims to resolve the CreditWatch when the deal closes.

“We could lower the rating by one notch if we expect Agiliti to pursue a more aggressive financial policy such that leverage increases above 5x or FOCF to debt declines below 5% after close,” S&P said in a press release.

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