Moody's upgrades EyeCare Partners

Moody's Investors Service said it upgraded EyeCare Partners, LLC's corporate family rating to B3 from Caa1, the probability of default rating to B3-PD from Caa1-PD, the first-lien senior secured bank credit facility to B2 from B3, and the second-lien senior secured bank credit facility to Caa2 from Caa3.

“The upgrade reflects ECP's improved operating performance and liquidity over the last few months as it has mostly returned to pre-pandemic patient volumes. The upgrade also reflects Moody's view that some of ECP's cost reductions and process improvements will be a permanent benefit and that margins should improve as ECP expands in scale through both acquisitions and organic growth,” Moody’s said in a press release.

Later this year, ECP will open a new ambulatory surgery center, adding to margin expansion and lowering overall leverage. Moody's said it forecasts ECP’s debt/EBITDA will improve to under 7x within the next 12-18 months.

The outlook is stable.

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