Moody's ups Radiation debt

Moody's Investors Service said it upgraded the rating on the 9 7/8% senior subordinated notes due 2017 of Radiation Therapy Services, Inc. to B3 (LGD5, 75%) from Caa1 (LGD5, 80%), following the $66.3 million add-on to the original $310 million issue amount.

Moody's upgraded the company's $265 million first-lien senior secured term loan due 2014 and $75 million first-lien revolving credit facility due 2013 to Ba2 (LGD2, 18%) from Ba3 (LGD2, 23%) and affirmed the B2 corporate family and probability of default ratings.

The outlook was changed to negative from stable.

The $66.3 million proceeds along with $16 million equity contribution were used to acquire Medical Developers LLC.

The upgrade of the senior secured facilities and subordinated notes reflects the relative ranking of the debt in the capital structure as the percentage of senior secured debt has decreased as compared to the senior subordinated debt, the agency said.

The ratings and outlook reflect the company's considerable debt leverage, limited absolute scale and concentration of revenues by and geography as well as its aggressive acquisition strategy and competitive position, the agency said.

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