S&P trims Medical Specialties view to negative

Standard & Poor’s said it affirmed its B corporate credit rating and B issue-level rating on Medical Specialties Distributors LLC and revised the outlook to negative from stable.

S&P is also revising the liquidity assessment to “less than adequate” from “adequate.”

“The corporate credit rating affirmation reflects our belief that, despite the ongoing cash flow deficits and challenging liquidity position, MSD will generate modest positive cash flow in 2015 as a result of improved working capital management and reduction to its 2015 capital expenditures,” said S&P credit analyst Maryna Kandrukhin in a news release.

“While we think faster collections combined with lower equipment investment will help MSD generate positive cash flow in 2015 and use it to reduce the revolver balance, we note that improvement is not yet evident in the company's results.”

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