Research Update: MED ParentCo Outlook Revised To Stable On Improved Performance, 'B-' Rating Affirmed; Incremental Term Loan Rated 'B-'

Optical retailer MED ParentCo L.P. (operating as MyEyeDr.) is leveraging sequentially improved business trends in the second half of 2020 amid the ongoing coronavirus pandemic to raise a $75 million fungible incremental first-lien term loan to fund future acquisitions. We expect improving performance trends will continue throughout 2021, which will result in adequate liquidity and credit metrics remaining at levels we consider appropriate for the current rating. We revised our outlook to stable from negative. At the same time, we affirmed all our ratings, including our 'B-' issuer credit rating on the company. The stable outlook reflects our view that threats posed by the pandemic to MyEyeDr.'s sales and liquidity have mostly subsided. We expect MyEyeDr.'s credit metrics will gradually

...- Optical retailer MED ParentCo L.P. (operating as MyEyeDr.) is leveraging sequentially improved business trends in the second half of 2020 amid the ongoing coronavirus pandemic to raise a $75 million fungible incremental first-lien term loan to fund future acquisitions. - We expect improving performance trends will continue throughout 2021, which will result in adequate liquidity and credit metrics remaining at levels we consider appropriate for the current rating. - We revised our outlook to stable from negative. At the same time, we affirmed all our ratings, including our 'B-' issuer credit rating on the company. - The stable outlook reflects our view that threats posed by the pandemic to MyEyeDr.'s sales and liquidity have mostly subsided. We expect MyEyeDr.'s credit metrics will gradually recover over the next 12 months due to profit growth from its accretive acquisitions and same-store sales increases....

Research Update