Moody's: Valitas B1, loan Ba3

Moody's Investors Service said it assigned B1 corporate family and probability of default ratings to Valitas Health Services, Inc.

The agency also said it assigned a Ba3 (LGD 3, 35%) rating to the company's proposed $360 million credit facility, consisting of a $75 million revolver and a $285 million term loan.

The proceeds will be used to fund the acquisition of the equity of America Service Group, Inc. and refinance existing debt.

The outlook is stable.

The ratings reflect an expectation that the company will focus on reducing the leverage added in the acquisition, Moody's said.

The ratings also consider the increased scale and prominent position the combined company will have among providers of healthcare services to correctional facilities, the agency said.

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