S&P trims Team Health

S&P said it trimmed its ratings on Team Health Holdings Inc., including the ratings on its senior secured term loans and revolver to CCC+ from B-.

“Weak cash flow prospects and looming debt maturities increase the probability of default. TeamHealth has significant exposure to changes in short-term interest rates given that about three-quarters of its total debt is based on a variable rate (SOFR or Libor). Since the start of the year, short-term interest rates have meaningfully increased, and we expect they will continue to rise into 2023, thereby driving up interest costs for Team Health,” the agency said in a press release.

S&P noted Team Health has about $1.2 billion of debt coming due in February 2024, which has yet to be addressed.

The outlook is negative.

© 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.