S&P alters Artivion view to negative

S&P said it changed its outlook for Artivion Inc. to negative from stable and affirmed the B ratings on the company and its bank loans.

“The company's adjusted EBITDA margin in the first half of 2022 dropped to 14.3% from 20.5% in the first half of 2021. This resulted in S&P Global Ratings-adjusted leverage of 8.7x at the end of the second quarter 2022, compared to 7.6x at the end of 2021,” the agency said in a press release.

S&P cited the challenges of higher raw material costs and freight costs, and supply chain disruptions as well as hospital staff shortages leading to delays in procedures.

“The negative outlook reflects our expectation that the company's financial results could remain challenged by ongoing macroeconomic and industry trends. We could lower our rating over the next 12 months if the company's financial metrics do not improve sufficiently, leading us to believe credit metrics will be pressured for an extended period,” the agency said.

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