DISTRESSED DAILY: Avalign’s Supply Chain Woes Hit Credit Rating

Surgical and orthopedic equipment maker Avalign Holdings Inc. is among the companies taking a hit from supply chain woes and a tight labor market.

The pandemic hasn’t treated Avalign well. First, it crushed demand for surgery equipment as elective procedures were canceled. Now that demand is returning, the supply chain is causing problems.

S&P Global Ratings downgraded Avalign to CCC+ on Friday, blaming supply chain and labor disruptions that have “significantly affected” the company’s margins, cash flow and leverage.

Avalign has won several contracts recently and should be helped by a gradual rebound in orders, according to the report. But ...