Moody’s revises MediMedia to negative

Moody's Investors Service said it changed MediMedia USA, Inc.'s outlook to negative from stable.

The B3 corporate family rating, B2 rating for the $215 million first-lien term loan and $25 million revolver, and Caa2 rating for the $100 million second-lien were affirmed at current levels.

Moody’s said the outlook change is due to lower than anticipated results and negative free cash flow, which has weakened the liquidity position of the company. As of the first quarter of 2014, the company has $17 million drawn against its $25 million revolver and the agency expects MediMedia will have to carefully manage its liquidity position going forward.

The company has restructured its restricted subsidiaries into two main operating platforms, which are anticipated to lead to additional cost savings that will offset some of the impact from lower than expected performance. This restructuring changes its prior strategy to create four standalone operating subsidiaries that was carried out last year, the agency said.

© 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.