S&P raises Vizient

S&P said it raised its ratings on Vizient Inc. and its senior secured loans to BB from BB- and its senior unsecured notes to B+ from B.

“The upgrade is based on our expectations of continued solid revenue growth and cash flow generation, maintaining leverage below 3.5x despite continued tuck-in acquisitions. Vizient has managed the pandemic well, and we expect organic growth will stabilize at about historical low- to mid-single-digit percentages as patient and procedure volumes continue to normalize along with the rebound in the advisory business. Vizient's ample cash flows enable it to repay debt while funding modest acquisition activity,” the agency said in a press release.

S&P said it forecasts Vizient will deliver about $300 million-$340 million in discretionary cash flow in 2021 and $350 million-$400 million in 2022.

The outlook is stable.

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