Moody's cuts Aurora

Moody's Investors Service said it downgraded Aurora Diagnostics Holdings, LLC's corporate family and probability of default ratings to B2 from B1.

The outlook was changed to stable from negative.

Concurrently, Moody's said it affirmed all other ratings of the company.

Moody's said the downgrade reflects its expectation that reductions in leverage will not be forthcoming in the near term given the company's delay of a contemplated equity offering, the recognition of an impairment charge related to the expected performance of certain facilities and ongoing competition for pathology services.

Additionally, Moody's said it expects free cash flow to be used primarily to fund upcoming payments related to earn out contingencies and will, therefore, not be available to reduce outstanding debt.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.