Moody's rates Viant loans Ba3, notes Caa1

Moody's Investors Service said it assigned B2 corporate family and probability-of-default ratings to Viant Holdings, Inc., Ba3 (LGD2, 29%) ratings to its $50 million senior secured revolver and $275 million senior secured term loan B and Caa1 (LGD5, 84%) ratings to its $185 million senior subordinated notes.

The outlook is stable.

Viant, formerly a wholly owned subsidiary of Concentra Operating Corp., operates the group health business that was formerly part of Concentra's managed care division.

The agency said the B2 corporate family rating reflects Viant's small size, high leverage, modest interest coverage, and minimal amount of cash flow relative to outstanding debt. Moody's is also concerned with the high level of customer concentration risk because the top ten customers account for over 50% of the company's revenues.

This risk is partially mitigated by lower customer turnover, long-term customer relationships, a broader array of products and services and high customer switching costs, Moody's said, adding that the company benefits from its ability to use its expertise and technology to lower medical costs and reduce administrative expenses for its clients.

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