Moody's prunes EyeCare Partners

Moody's Investors Service said it downgraded EyeCare Partners, LLC’s ratings, including the corporate family rating to Caa2 from B3, and the probability of default rating to Caa2-PD from B3-PD. Moody's also cut the ratings on the senior secured first-lien delayed draw term loan, senior secured first-lien revolving credit facility and senior secured first-lien term loan to Caa1 from B2, and the ratings on the senior secured second-lien term loan to Ca from Caa2.

“The ratings downgrade reflects Moody's expectation that ECP will maintain very high financial leverage and weak liquidity over the next 12 to 18 months. Moody's expects ECP's operating performance to be weak, reflecting cost headwinds, some integration issues with recently acquired businesses and higher interest expenses. The expiry of interest rate hedges in October 2023 (which have been partly replaced) will contribute to increasing ECP's reliance on its revolver to fund its operations, in the absence of a material improvement in cash generation.

“As a result, Moody's views ECP's capital structure as increasingly unsustainable,” the agency said in a press release.

The outlook remains negative.

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