Following closures from March to May 2020, most of Dentalcorp Health Services ULC's clinics have resumed providing elective dental procedures. While Dentalcorp's business was significantly hurt by second-quarter clinic closures because of the COVID-19 pandemic, it has started to show a recovery trend from the trough in April, reporting revenues at about 85% of 2019 levels in July. We believe Dentalcorp will maintain adequate liquidity, given its demonstrated ability to reduce variable costs. The company had full access to its revolver as of June 30, 2020. We are affirming our 'B-' rating on Dentalcorp. Our negative outlook reflects our view that the dental industry remains susceptible to further demand declines. Dentalcorp reduced variable costs through furloughs, and it reduced advertising
