Moody's drops InterDent to distressed

Moody's Investors Service lowered InterDent Service Corp.'s corporate family and probability-of-default ratings to Caa2 from B3 following a continued decline in operating performance leading to limited access to the company's revolving line of credit.

Also downgraded was the $80 million 10¾% senior secured notes due 2011 to Caa2 (LGD3, 48%) from B3 (LGD3, 46%).

The outlook was revised to negative from stable.

According to Moody's, the downgrade reflects the company's weak liquidity and financial leverage. Further causing liquidity concerns, InterDent's adjusted EBIT-to-interest ratio is projected to be much less than 1 times for fiscal year 2007.

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