S&P downgrades Immucor

S&P said it downgraded Immucor Inc. to CCC from CCC+ and its senior secured credit facility to CCC+ from B-. The recovery rating remains 2, reflecting an expectation for substantial (70%-90%; rounded estimate: 85%) recovery in the event of default.

The agency also lowered the rating on the senior secured notes to CC from CCC-. The recovery rating remains 6, reflecting an expectation for negligible (0%-10%; rounded estimate: 5%) recovery in the event of default.

“Refinancing risk is highly elevated as Immucor approaches a large maturity. The revolver and term loan B mature on March 17, 2021, and June 15, 2021, respectively, and we expect that Immucor will have difficulty refinancing due to its mature business and the current credit market conditions. Given Immucor's already heavy interest burden and subsequent inability to generate sustainable cash flows, we believe it is likely that it will seek to restructure rather than refinance its existing capital structure during the next 12 months,” the agency said in a press release.

The outlook is negative.

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