Moody’s lowers CDRH loans to B2

Moody's Investors Service said it downgraded the ratings on CDRH Parent, Inc.'s, the indirect parent of Healogics, Inc., exiting first-lien senior secured credit facilities to B2 from B1.

CDRH is proposing to raise an additional $20 million in incremental first-lien term loan now totaling $420 million and reduce its proposed second-lien term loan by the corresponding amount to $200 million.

The agency affirmed CDRH's B3 corporate family rating, B3-PD probability of default rating and the Caa2 rating on the second-lien term loan.

Moody’s aid the downgrade reflects the elimination of a layer of loss absorption below the senior secured first lien credit facilities, resulting from the lower amount of second lien term loan, as well as the proposed increase in the amount of first-lien debt outstanding. The first-lien debt will represent the preponderance of the company's obligations following the proposed transaction.

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