Moody's trims Medical Solutions

Moody's Ratings said it downgraded Medical Solutions Holdings, Inc.’s corporate family rating to B3 from B2 and probability of default rating to B3-PD from B2-PD, the senior secured first-lien credit facilities to B2 from B1, and the senior secured second-lien term loan to Caa2 from Caa1.

“The downgrade of Medical Solutions' CFR reflects the company's deteriorating credit metrics. Medical Solutions' revenue is declining, and leverage will remain high following a series of large dividends. Debt-to-EBITDA as of LTM Sept. 30, 2023, was 6.1x, but Moody's forecasts that leverage will continue to rise to about 9x through the end of 2024,” the agency said in a press release.

However, Moody's said it forecasts Medical Solutions' credit metrics will start improving by the end of 2025, with debt-to-EBITDA declining below 7.5x.

The outlook remains stable.

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