Accelerating operating expenses tied to growth initiatives have weakened Virgin Pulse's credit profile in recent quarters, leading to negative free operating cash flow (FOCF) through the first half of fiscal 2022. In the event of a sustained macroeconomic downturn, we would expect weak cash flow and EBITDA margins to persist, potentially leading to continued revolving credit facility draws and diminished liquidity. We revised our outlook to negative from stable and affirmed our 'B-' issuer credit rating on the company. The negative outlook reflects our view that the high probability of a recession in the near-term, coupled with rising rates, will exacerbate the company's already weakened free cash flow and EBITDA margins. The negative outlook reflects our view that the high
