Moody’s could drop Envision

Moody's Investors Service said it placed the ratings of Envision Healthcare Corp. under review for downgrade, including the B1 corporate family Rating and B1-PD probability of default rating.

The rating action follows the June 15 announcement that Envision Healthcare Holdings, Inc., which wholly owns Envision, entered into a definitive all-stock merger agreement with AmSurg Corp.

The transaction will create a combined organization with an estimated $8.5 billion in revenues. Envision shareholders will own about 53% of the new entity – to be named Envision Healthcare Corp. – and AmSurg shareholders will own 47% of the combined organization.

Moody's said the review will focus on the expected performance of the combined entities, the proposed capital structure, the strategy for deleveraging, the timing and magnitude of expected synergies, as well as the combined organization's free cash flow capabilities and liquidity.

© 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.