On Urohealth’s Future
NEWPORT BEACH — Standard & Poor’s said Wednesday that Urohealth Systems Inc.’s financial outlook for the next few years has weakened.
The New York agency cited the biomedical company’s disclosures this week of unexpectedly high losses for its past fiscal year and lower-than-expected sales for its first quarter.
Standard & Poor’s revised its rating on the medical device company’s overall financial outlook to “stable†from “positive.†The rating reflects challenges the company faces as a result of its rapid growth, numerous acquisitions, high debt level, and reliance on a narrow product line that’s subject to changes in technology, the agency said.
The agency continued its overall credit rating of B plus for the company as well as its B minus rating on $110 million in subordinated notes and a B plus rating on its $50-million bank credit agreement.
Urohealth’s stock, which lost about a third of its value from June 23 to Tuesday on reports of lower-than-expected financial results, recovered slightly Wednesday. The stock rose 56.3 cents a share in Nasdaq trading to close at $5.675.
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