S&P cuts Dentsply Sirona, notes

S&P said it lowered its long-term issuer credit rating on Dentsply Sirona Inc. to BBB from BBB+.

The outlook is stable.

At the same time, the agency lowered its issue-level rating on the company's outstanding $450 million fixed-rate senior notes due August 2021 to BBB from BBB+.

S&P said the action reflects an expectation that the company's debt leverage will increase to about 2.5x to 2.7x in 2018 and will remain elevated for a prolonged period of time, in contrast to the agency’s previous projections of the company's leverage remaining around 2x in 2018 to 2019.

“This deterioration stems primarily from a negative revenue trend in the technology and equipment (T&E) segment, resulting in lower forecasted EBITDA margins and weaker cash flow generation,” S&P said in a news release.

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