Moody's might downgrade Team Health

Moody's Investors Services said it placed Team Health Holdings, Inc.’s Ba2 corporate family rating, its Ba2-PD probability of default rating and the Ba2 (LGD3) ratings assigned to its senior secured credit facilities under review for downgrade following the company's announcement that it agreed to acquire IPC Healthcare Inc.

The proposed acquisition is expected to be funded with $1.6 billion of new debt. Moody's currently expects that closing leverage will be between 5.7 and 6.2 times debt to EBITDA, which will push Team Health's leverage above the trigger to maintain the current Ba2 rating.

The agency said its review will focus on the expected performance of the combined entities, the proposed capital structure and strategy for deleveraging, the timing and magnitude of synergies realized, as well as the combined organization's free cash flow capabilities and liquidity.

© 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.