A payment default or debt restructuring is looking increasingly likely for Bioplan USA Inc. based on upcoming 2023 maturities, expected covenant breaches, poor cash flow, difficult debt capital market conditions, and our view that a recession is inevitable in the next year. We lowered our issuer credit rating to 'CCC' from 'CCC+', our issue-level ratings on the first-lien debt to 'CCC' from 'CCC+', and our ratings on the second-lien debt to 'CCC-' from 'CCC'. The negative outlook reflects the risk that operating performance will continue to weaken in a worsening macroeconomic environment such that Bioplan faces an increased risk of a payment default, restructuring, or distressed exchange if it cannot improve cash flow generation and refinance its upcoming debt maturities
