Moody's rates Radiation Therapy notes Caa1

Moody's Investors Services said it affirmed Radiation Therapy Services, Inc.'s corporate family and probability of default rating at B2, along with its senior secured credit facilities at B1. Moody's also said it assigned a Caa1 rating to the company's proposed $310 million senior subordinated notes.

The outlook was changed to stable from negative.

If the proposed issuance closes as proposed, the ratings on the senior secured credit facilities will be upgraded to Ba3 to reflect the change in the capital structure, Moody's said.

The proposed notes are being used to refinance the existing $175 million senior subordinated notes, pay down a portion of existing debt, Moody's said, and fund a pending acquisition.

The outlook change incorporates an expectation that Radiation Therapy's credit metrics should improve from current levels and the company's liquidity position strengthen with expected good cash flow generation and minimal revolver usage, the agency said.

The ratings reflect its considerable debt leverage, limited absolute scale, as well as its concentration of revenues, Moody's 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.