S&P lowers Trident Holding

S&P said it lowered its corporate credit rating on Trident Holding Co. LLC to CCC+ from B- and placed the rating on CreditWatch with negative implications.

At the same time, S&P said it lowered the rating on the first-lien debt issued by New Trident Holdcorp Inc. to CCC+ from B- and placed the rating on CreditWatch negative.

The recovery rating on this debt remains 3, indicating an expectation for meaningful (50%-70%; rounded estimate: 65%) recovery of principal in the event of a payment default.

S&P also lowered its rating on New Trident Holdcorp Inc.'s second-lien term loan to CCC- from CCC and placed the rating on CreditWatch negative. The recovery rating on this debt remains 6, indicating an expectation for negligible (0%-10%; rounded estimate: 0%) recovery in the event of default.

“Trident has underperformed our expectations since its merger with another provider of bedside diagnostic services, Schryver Medical LLC (Schryver). We had expected EBITDA margins to be in 14%-15% range, on the back of cost synergies and a shift in product mix, resulting in adjusted debt to EBITDA of 7.1x and funds from operations (FFO) to debt of 6% in 2017,” S&P said in a news release.

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