Fitch downgrades Team Health

Fitch Ratings said it downgraded Team Health Holdings, Inc.'s (TMH) ratings, including the long-term issuer default rating to CCC- from CCC. Fitch also slashed the term loan and unsecured notes to CCC-/RR4 from B-/RR2 and to C/RR6 from CC/RR6.

“The downgrade to CCC- reflects that refinancing risk remains high as the company has moved closer to the February 2025 unsecured notes' maturity amid still volatile debt capital markets with weaker, albeit rebounding, operating fundamentals than when higher rated.

“The downgrade is despite the fact that Fitch considers the recent debt transactions to be credit positives because they add liquidity and will extend the debt maturity profile assuming they don't spring forward. Until TMH addresses the unsecured notes, they will effectively remain current on their debt because of springing maturities to November 2024,” the agency said in a press release.

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