...- Nashville, Tenn.-based Aegis Toxicology Sciences Corp.'s COVID-19 testing business declined faster and further than we expected, leading to revenue, margins, and cash flow far underperforming our expectations. At the same time, refinancing risk is rising as its long-term debt matures in May 2025. - While we expect margins to improve in 2024 as the company right-sizes its costs to the now lower revenue expectations, our revised forecast assumes revenue and cash flow remain far below our prior expectations. - We expect free cash deficit in 2023, improving to slight positive in 2024 with margin improvement. - Therefore, we lowered our issuer credit rating on Aegis Toxicology Sciences Corp. to 'B-' from 'B'. In addition, we lowered our issue-level rating on the company's first-lien term loan to 'B-' from 'B'. The recovery rating on this debt remains '3' with rounded recovery prospects of 55%. - The stable outlook reflects our view that the company effectively manages its cost structure, its...
