S&P cuts Caris Diagnostics

Standard & Poor's said it lowered the corporate credit rating on Caris Diagnostics to B from B+ and on its senior secured bank credit facility to B from B+. The recovery rating remains unchanged at 3.

The corporate credit rating was placed on CreditWatch with negative implications.

The downgrade reflects tighter liquidity associated with weaker-than-expected earnings in its hematology business together with a covenant stepdown at Sept. 30, according to the agency.

The company's leverage, for bank covenant compliance purposes, was 3.23x at Sept. 30.

S&P said the speculative-grade rating reflects the company's narrow operating focus, early-stage status, relatively small scale, potential for reimbursement pressure and the near-term risks associated with its large expansion projects.

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