Moody's rates Emergency Medical loan Baa3

Moody's Investors Service said it upgraded the corporate family rating of AMR Holdco, Inc. to Ba1 from Ba2.

AMR Holdco and EmCare Holdco Inc. are co-issuers and operated through a holding company, Emergency Medical Services LP, which is in turn owned by Emergency Medical Services Corp.

Moody's also said it assigned a rating of Baa3 (LGD2, 26%) to Emergency Medical Services proposed credit facility, consisting of a revolving credit facility of $125 million and a $425 million term loan. Moody's also said it upgraded the company's speculative grade liquidity rating to SGL-1 from SGL-2.

Moody's said it also upgraded the ratings of the company's existing credit facility and subordinated notes.

The outlook is stable.

Moody's said it understands the proceeds of the proposed credit facilities will be used to refinance the existing senior secured debt of Emergency Medical Services and fund a call for the company's outstanding senior subordinated notes.

The probability of default rating of Ba2 was not upgraded, reflecting the change in the capital structure to all secured debt upon the completion of the proposed transaction, the agency said.

The upgrade reflects the company's modest financial leverage and strong interest coverage. The company continues to generate robust cash flow due to growth in the business, Moody's said.

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