Moody's turns RadNet outlook to stable

Moody's Investors Service said it affirmed the ratings of RadNet Management, Inc. and changed the outlook to stable from negative. Moody's affirmed RadNet's B2 corporate family rating, B2-PD probability of default rating, and B1 rating on the first-lien credit facility. Simultaneously, Moody's upgraded the company's speculative grade liquidity rating to SGL-2 from SGL-3.

“The outlook change to stable from negative reflects the company's rapid return of patient volumes in the second half of 2020 despite the company's concentration in California, which was hard hit by the coronavirus. The stabilization of the outlook also reflects RadNet's cash flow resilience over the past year and its improvement in liquidity,” Moody’s said in a press release.

The SGL upgrade reflects an expectation for enough free cash flow to cover mandatory amortization payments on its term loan and access to a largely undrawn $195 million revolver, the agency said.

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