Port Washington, N.Y.-based durable medical device manufacturer Medical Depot Holdings Inc. recently completed a financing transaction in which it extended its revolver maturity, suspended first-lien debt amortization for six quarters, and exchanged second-lien debt for new convertible paid-in-kind (PIK) loans. We view this transaction as a de facto restructuring. We are lowering our issuer credit rating to 'D' from 'CC' and the issue-level ratings on the first-lien and second-lien debt to 'D' from 'CC' and 'C', respectively. We are also removing the ratings from CreditWatch with negative implications. We will reassess the ratings on Medical Depot and its debt in the coming days to reflect the new capital structure. The downgrade follows the disclosure that Medical Depot has completed a
