S&P changes Immucor view to stable

S&P said it affirmed its CCC+ issuer credit rating on Immucor Inc. and revised the outlook to stable from positive.

At the same time, the agency affirmed the B- issue-level rating on the company's senior secured term loan. The recovery rating remains 2, reflecting an expectation for substantial (70%-90%; rounded estimate: 85%) recovery in the event of default.

S&P also affirmed the CCC- issue-level rating on the company's senior unsecured notes. The recovery rating remains 6, reflecting negligible (0%-10%; rounded estimate: 5%) recovery.

“The outlook revision to stable from positive reflects our view that Immucor's weak credit measures and cash flow generation are unlikely to improve materially given the company's operations in a mature business,” S&P said in a news release.

“Margins have improved modestly as a result of the cost-cutting initiative started last year, but adjusted leverage remains very high at 9.6x as of fiscal year-end May 31, 2018.”

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