Moody's could lift CCS Medical

Moody's Investors Service said it placed CCS Medical Inc.'s Caa1 corporate family and probability-of-default ratings under review for possible upgrade. The company's financial flexibility could improve if it completes an initial public offering of common stock and refinances its existing debt, the agency said.

The agency affirmed the ratings on the existing secured revolver and first-priority secured term loan at B3 (LGD3, 33%) and the second-priority secured term loan at Caa2 (LGD5, 81%) and expects to withdraw these ratings when the deal closes.

Moody's said it would focus its review on the risk of a competitive bidding process, the credit implications of the newly acquired Sanvita glucose monitoring business and targeted leverage and the likelihood for more acquisitions.

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