Better Health’s Rating Cut to ‘SD’ by S&P on Debt-Exchange Deal

Primary-care service provider Better Health’s issuer credit rating was lowered to selective default from CCC+ by S&P Global Ratings.

• Issue-level rating on its senior secured debt cut to D from CCC+

COMMENTARY AND CONTEXT

• The company, formerly called Physician Partners, carried out a debt exchange that extends maturities and swapped the first-lien term loan
  • New tranches of term loans extend the maturity to 2029 and 2030 from 2028, depending on the tranche
  • Only a portion of the original lenders received par
• Lenders “are receiving less than originally promised without sufficient offsetting compensation,” said S&P
• S&P expects to reassess the ...