S&P cuts Global Medical Response

S&P said it lowered its ratings on Global Medical Response Inc. and its first-lien secured debt to B- from B. The 3 recovery rating is unchanged.

“Profitability within GMR's ground operations has been trending much weaker than we had expected owing primarily to inflationary pressures. Ground transport volumes and revenue have been generally stable over the past few quarters and roughly in line with what we had expected. However, significant inflationary pressures within the segment, including from wages and fuel costs, have considerably weakened its profitability. We expect the segment's EBITDA in 2022 to be down more than 80% from 2021,” S&P said in a press release.

The agency said it now forecasts adjusted debt to EBITDA of nearly 11x in 2022 and about 8x in 2023 with adjusted FOCF to debt that should remain below 4% until at least 2024.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.