Moody's rates Radiation Therapy loan Ba3, notes B1

Moody's Investors Service said it lowered Radiation Therapy Services, Inc.'s corporate family and probability of default ratings to B3 from B2, assigned a Ba3 rating to a proposed $150 million first-lien revolving credit facility and a B1 rating to a proposed $335 million second-lien notes.

In addition, Moody's lowered the company's $376 million subordinated notes to Caa2 from B3.

Concurrently with the above ratings actions, speculative grade liquidity rating of SGL-3 was assigned, indicating adequate liquidity.

The outlook was changed to stable from negative.

Moody's said the downgrade of the corporate family rating to B3 reflects its view on the aggressiveness of the company's financial policy that is expected to place further stress on Radiation Therapy's already highly leveraged capital structure and weak free cash flow.

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