Moody's raises RadNet

Moody's Ratings said it raised RadNet Management, Inc.'s corporate family rating to B1 from B2, probability of default rating to B1-PD from B2-PD, and the ratings on the senior secured credit facility, including the senior secured first-lien term loan and senior secured first-lien revolving credit facility, to Ba3 from B1.

“The ratings upgrade reflects RadNet's shift to more creditor-friendly financial policies, healthy organic growth supported by favorable industry trends, and very good liquidity profile. Over the last 12 months, RadNet has raised approximately $460mm of equity to fund tuck-in acquisitions, support de novo growth, bolster its cash balance, and repay approximately $30 million of debt. Moody's expects deployment of the company's large cash balance to aid in the deleveraging process,” the agency said in a statement.

Moody's said it projects debt to EBITDA to fall into the high 3x range over the next 12-18 months from 4.4x at Dec. 31.

The outlook remains stable.

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