Moody's rates Emergency Medical loan B1

Moody's Investors Service said it assigned B2 corporate family and probability of default ratings to Emergency Medical Services Corp. and a B1 (LGD3, 34%) rating to the proposed $1.44 billion term loan due 2018.

Moody's assigned a speculative-grade liquidity rating of SGL-1.

The outlook is stable.

The proceeds of the term loan, along with an equity contribution and an issuance of debt, will be used to fund the acquisition of the company by Clayton, Dubilier and Rice, LLC and to retire the company's existing debt at AMR Holdco, Inc.

The existing ratings of AMR Holdco, the borrower in the existing corporate structure, remain unchanged including its Ba1 corporate family rating and Baa3 (LGD2, 26%) facilities.

The ratings on Emergency Medical reflects the considerable debt load the company will operate with following the proposed leveraged buyout as well as the expectation that the company will maintain very good liquidity and stable free cash flow, the agency said.

The ratings also reflect the benefits of the company's scale in each of its operating segments, which are otherwise very fragmented among other providers, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.