Pathway Vet Alliance LLC Downgraded To 'CCC+' On Cash Flow Deficits And Deteriorating Liquidity, Outlook Negative - S&P Global Ratings’ Credit Research

Pathway Vet Alliance LLC Downgraded To 'CCC+' On Cash Flow Deficits And Deteriorating Liquidity, Outlook Negative

Pathway Vet Alliance LLC Downgraded To 'CCC+' On Cash Flow Deficits And Deteriorating Liquidity, Outlook Negative - S&P Global Ratings’ Credit Research
Pathway Vet Alliance LLC Downgraded To 'CCC+' On Cash Flow Deficits And Deteriorating Liquidity, Outlook Negative
Published Apr 12, 2024
4 pages (2056 words) — Published Apr 12, 2024
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About This Report

  
Abstract:

U.S.-based veterinary practice management company Pathway Vet Alliance LLC (doing business as Thrive Pet Healthcare) continues to face cash flow deficits due to persistent operating challenges, soft industrywide volumes, and high interest rates. While we believe the company is making progress toward addressing these issues, we anticipate it will generate material free cash flow deficits in 2023 and 2024 (likely also through 2025 and, possibly, 2026). We now believe Thrive's capital structure is likely unsustainable and see an elevated possibility of default (including a distressed exchange) in the next 2-3 years. Therefore, we lowered our long-term issuer credit rating on the company to 'CCC+' from 'B-' and our issue-level rating on its senior secured credit facility to 'CCC+' from 'B-'.

  
Brief Excerpt:

...April 12, 2024 - U.S.-based veterinary practice management company Pathway Vet Alliance LLC (doing business as Thrive Pet Healthcare) continues to face cash flow deficits due to persistent operating challenges, soft industrywide volumes, and high interest rates. While we believe the company is making progress toward addressing these issues, we anticipate it will generate material free cash flow deficits in 2023 and 2024 (likely also through 2025 and, possibly, 2026). - We now believe Thrive's capital structure is likely unsustainable and see an elevated possibility of default (including a distressed exchange) in the next 2-3 years. - Therefore, we lowered our long-term issuer credit rating on the company to '###+' from 'B-' and our issue-level rating on its senior secured credit facility to '###+' from 'B-'. Our '3' recovery rating (rounded estimate: 50%) on the facility is unchanged. ENGLEWOOD (S&P Global Ratings) April 12, 2024--S&P Global Ratings today took the rating actions listed...

  
Report Type:

Ratings Action

Ticker
1672020D
Issuer
Pathway Vet Alliance LLC
Sector
Global Issuers
Country
United States
Region
United States
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Pathway Vet Alliance LLC Downgraded To 'CCC+' On Cash Flow Deficits And Deteriorating Liquidity, Outlook Negative" Apr 12, 2024. Alacra Store. May 05, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Pathway-Vet-Alliance-LLC-Downgraded-To-CCC-On-Cash-Flow-Deficits-And-Deteriorating-Liquidity-Outlook-Negative-3152385>
  
APA:
S&P Global Ratings’ Credit Research. (). Pathway Vet Alliance LLC Downgraded To 'CCC+' On Cash Flow Deficits And Deteriorating Liquidity, Outlook Negative Apr 12, 2024. New York, NY: Alacra Store. Retrieved May 05, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Pathway-Vet-Alliance-LLC-Downgraded-To-CCC-On-Cash-Flow-Deficits-And-Deteriorating-Liquidity-Outlook-Negative-3152385>
  
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