Moody’s cuts Team Health, facilities, notes

Moody's Investors Service said it downgraded Team Health Holdings, Inc.'s corporate family rating to B3 from B2, probability of default rating to B3-PD from B2-PD, senior secured credit facilities to B2 from B1 and unsecured notes to Caa2 from Caa1.

The outlook is negative.

Moody’s said the downgrade of the corporate family rating reflects its view that the physician staffing company's adjusted debt to EBITDA will remain in the mid-to-high 7 times range over the next 12 to 18 months. Debt to EBITDA was roughly 7.8 times on Sept. 30.

"We expect sluggish patient volume growth at the hospitals Team Health staffs, and adverse payer mix shifts facing all physician staffing companies will limit the company's ability to reduce leverage," Moody's vice president, senior analyst Jonathan Kanarek said in a news release.

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