S&P cuts Carestream Dental

S&P said it lowered its ratings on Carestream Dental Technology Parent Ltd., its revolver and first-lien debt to CCC from B- and its second-lien debt to CC from CCC.

“The downgrade reflects our view that Carestream may face difficulty refinancing its first-lien term loan, which is due within 12 months,” S&P said in a press release.

Carestream’s first-lien term loan with $490 million outstanding comes due on Sept. 1, 2024. “We do not expect the company will have sufficient liquidity to repay the loan given its cash balance of under $45 million as of March 31, 2023, and projected free operating cash flow (FOCF) deficit of about $10 million-$15 million this year,” the agency explained.

The outlook is negative.

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