S&P lowers inVentiv view to negative

Standard & Poor's said it revised the outlook on inVentiv Health Inc. to negative from stable, reflecting weaker than expected results through the first nine months of 2013.

The company also needs to generate meaningful EBITDA growth over the next year while maintaining liquidity in order to be in a position to refinance its upcoming 2016 term loan maturity, S&P said.

While the agency said it currently expects new business wins and market expansion, this forecast is not without risk, especially given the possibility of contract cancellations inherent in both the contract-research organization and commercial-services organization business.

S&P also said it lowered the rating on inVentiv's existing senior secured debt to B- from B and revised the recovery rating to 3 from 2, indicating 50% to 70% expected default recovery.

The change in recovery prospects for the senior secured debt reflects the new ABL's super-priority lien on inVentiv's receivables, the agency said.

The CCC rating and 6 recovery rating on inVentiv's unsecured debt are not affected, S&P added.

The outlook revision to negative follows inVentiv's underperformance to 2013 forecasts, particularly in the third quarter, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.