Mallinckrodt PLC Downgraded To 'CCC-', On CreditWatch Negative On Possible Restructuring - S&P Global Ratings’ Credit Research

Mallinckrodt PLC Downgraded To 'CCC-', On CreditWatch Negative On Possible Restructuring

Mallinckrodt PLC Downgraded To 'CCC-', On CreditWatch Negative On Possible Restructuring - S&P Global Ratings’ Credit Research
Mallinckrodt PLC Downgraded To 'CCC-', On CreditWatch Negative On Possible Restructuring
Published Aug 06, 2020
3 pages (1497 words) — Published Aug 06, 2020
Price US$ 150.00  |  Buy this Report Now

About This Report

  
Abstract:

Mallinckrodt PLC announced that it is in discussions that could result in Chapter 11 proceedings in the near term, because of pressures related to a Centers for Medicare and Medicaid Services (CMS) rebate ruling, opioid litigation, and other risks. We are lowering our issuer credit rating on Mallinckrodt one notch to 'CCC-' from 'CCC' and placing all ratings on CreditWatch with negative implications. We are also lowering the senior secured issue-level ratings to CCC+ from B- and the senior unsecured issue-level ratings to C from CC. The recovery ratings of '1' and '6', respectively, are unchanged. The downgrade and CreditWatch placement reflect our base-case scenario that Mallinckrodt will file for bankruptcy or negotiate a distressed exchange within the next six

  
Brief Excerpt:

...August 6, 2020 - Mallinckrodt PLC announced that it is in discussions that could result in Chapter 11 proceedings in the near term, because of pressures related to a Centers for Medicare and Medicaid Services (CMS) rebate ruling, opioid litigation, and other risks. - We are lowering our issuer credit rating on Mallinckrodt one notch to '###-' from '###' and placing all ratings on CreditWatch with negative implications. We are also lowering the senior secured issue-level ratings to ###+ from B- and the senior unsecured issue-level ratings to C from ##. The recovery ratings of '1' and '6', respectively, are unchanged. - The downgrade and CreditWatch placement reflect our base-case scenario that Mallinckrodt will file for bankruptcy or negotiate a distressed exchange within the next six months. NEW YORK (S&P Global Ratings) Aug. 6, 2020--S&P Global Ratings today took the rating actions listed above. Reimbursement challenges and COVID-19-related pressures are increasing the possibility that...

  
Report Type:

Ratings Action

Issuer
Mallinckrodt PLC
GICS
Pharmaceuticals (35202010)
Sector
Global Issuers
Country
Ireland
Region
Europe, Middle East, Africa
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Mallinckrodt PLC Downgraded To 'CCC-', On CreditWatch Negative On Possible Restructuring" Aug 06, 2020. Alacra Store. May 01, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Mallinckrodt-PLC-Downgraded-To-CCC-On-CreditWatch-Negative-On-Possible-Restructuring-2491948>
  
APA:
S&P Global Ratings’ Credit Research. (). Mallinckrodt PLC Downgraded To 'CCC-', On CreditWatch Negative On Possible Restructuring Aug 06, 2020. New York, NY: Alacra Store. Retrieved May 01, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Mallinckrodt-PLC-Downgraded-To-CCC-On-CreditWatch-Negative-On-Possible-Restructuring-2491948>
  
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