Dentalcorp Health Services ULC's parent recently announced a proposed IPO transaction on the Toronto Stock Exchange (TSX). We view the transaction as credit-positive for Dentalcorp given the company's intention to use all the proceeds from the IPO, estimated at about $700 million, to repay existing debt. We are placing all of our ratings on Dentalcorp, including our 'B-' issuer credit rating, our 'B-' issue-level rating on the company's first-lien debt, and our 'CCC' issue-level rating on the company's second-lien debt, on CreditWatch with positive implications. The CreditWatch reflects the potential for an upgrade if the company successfully completes its IPO and uses the proceeds to repay debt. Under this scenario, we would also need to be confident that the company
