S&P trims Mallinckrodt

S&P said it lowered its long-term issuer rating on Mallinckrodt plc to CCC from B+ on the view of heightened risk of a distressed exchange over the next year, before any large settlement of opioid claims.

“While Mallinckrodt continues to generate positive free cash flow, we think the company’s ability to access capital markets to refinance debt maturities is limited given uncertainty around the company’s ultimate exposure to opioid liabilities, which we think could be significant. Given the maturity schedule and current debt trading levels, we think the risk of a distressed exchange is high,” said S&P in a press release

The outlook is negative.

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