Optical retailer MED ParentCo L.P. (operating as MyEyeDr.) has improved its operating margins and credit metrics in the first half of 2023. We expect modestly positive free operating cash flow (FOCF) in 2023, excluding the impact of deferred acquisition payments related to bonuses and milestones. Therefore, we revised our outlook on MED ParentCo to positive from negative to reflect the possibility of an upgrade within the next 12 months and affirmed the issuer and issue-level ratings. The positive outlook reflects the potential for a higher rating if performance continues to improve leading us to believe the company can fund its capital expenditures (capex), debt payments, and delayed acquisition payments with operational cash flows. Despite the improved performance, we do not
