Tower Health hit with 3-notch credit downgrade due to deteriorating finances

The unfavorable outlook reflects S&Ps expectation that Tower Health will continue to see operating losses in fiscal year 2021..

Alia Paavola –
Monday, November 2nd, 2020

S&P Global Ratings lowered West Reading, Pa.-based Tower Healths long-lasting score 3 notches due to its deteriorating finances in 2020..

S&P said that Tower Healths losses were a result of operating concerns that were intensified by the pandemic..

The credit ranking firm reduced its long-lasting score to “BB+” from “BBB+.” The score outlook remains negative. The downgrade impacts about $1.3 billion of long-lasting financial obligation..

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Tower Health likewise said in an Oct. 28 disclosure form that it prepares to engage a restructuring consultant in early November..

” The three-notch downgrade shows the substantial deterioration in Tower Healths financial profile in the ended June 30, 2020, consisting of a severe loss from operations and unfavorable money circulation resulting in inadequate financial obligation service protection ratios,” stated S&P Global Ratings credit analyst Kenneth Gacka.

The rating outlook stays unfavorable. © Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this material?