S&P drops Zelis Healthcare

S&P said it downgraded Zelis Healthcare Corp. to B from B+.

“Our downgrade of Zelis is based on its increased leverage relative to our expectations following the combination with RedCard and its refinanced capital structure. Prior to the announced debt recapitalization, Zelis had operated under a relatively conservative financial policy driven by private-equity sponsor, Parthenon Capital,” said S&P in a press release.

The agency also lowered the rating on Zelis’ first-lien senior secured credit facilities to B from B+.

The outlook is stable.

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