S&P trims Symplr

S&P said it lowered its ratings for Symplr Software Intermediate Holdings Inc. and its first-lien term loan to B- from B. The 2 recovery rating on the loan is unchanged, indicating meaningful (50%-70%; rounded estimate: 75%) recovery in default. The outlook is negative.

“The downgrade and negative outlook reflect our expectations that EBITDA growth is not rapid enough to cover the company's increasing fixed costs, leading to persistent FOCF deficits, deteriorating liquidity, and an unsustainable capital structure. We forecast the company's debt to EBITDA will be well above 10x in fiscal years 2022 and 2023,” S&P said in a press release.

The agency said it estimates Symplr will post its third straight year of FOCF deficits in 2022 and under 1x EBITDA interest coverage in 2022 and 2023.

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