Research Update: Bioplan USA Inc. Liquidity Assessment Revised To Less Than Adequate On Expected Covenant Breach

We expect Bioplan USA Inc.'s recovery from the pandemic to be hindered by macroeconomic and supply chain challenges, leading to a thin liquidity sources-over-uses ratio and an expected breach in its $13 million minimum liquidity covenant in the first half of 2023. As a result, S&P Global Ratings revised its liquidity assessment to less than adequate. We affirmed all our ratings, including our 'CCC+' issuer credit rating. The negative outlook on Bioplan USA Inc. reflects the risk that the business' recovery will be challenged by macroeconomic and supply chain issues such that its cash burn worsens and increases the likelihood of a payment default or distressed exchange in the next 12 months. It also reflects the risk that Bioplan will

...- We expect Bioplan USA Inc.'s recovery from the pandemic to be hindered by macroeconomic and supply chain challenges, leading to a thin liquidity sources-over-uses ratio and an expected breach in its $13 million minimum liquidity covenant in the first half of 2023. - As a result, S&P Global Ratings revised its liquidity assessment to less than adequate. - We affirmed all our ratings, including our '###+' issuer credit rating. - The negative outlook on Bioplan USA Inc. reflects the risk that the business' recovery will be challenged by macroeconomic and supply chain issues such that its cash burn worsens and increases the likelihood of a payment default or distressed exchange in the next 12 months. It also reflects the risk that Bioplan will be unable to extend its 2023 debt maturities before they become current....

Research Update