Moody’s affirms Unilabs

Moody's Investors Service said it affirmed Unilabs Subholding AB’s B2 corporate family rating and B2-PD probability of default rating.

The agency also affirmed the B1 rating of the senior secured facilities, including the €1.13 billion term loan (to be increased by €250 million) and €200 million revolving credit facility borrowed by Unilabs Diagnostics AB, and the Caa1 rating of the €405 million senior unsecured notes issued by Unilabs.

The outlook for all ratings is stable.

Moody’s said the action follows the company's announcement that it is in advanced discussions to acquire a clinical laboratory services network in a key existing market, and reflects the following interrelated drivers: (a) Unilab's leverage, as measured by Moody's-adjusted debt/EBITDA, would increase toward an estimated 6.5 times pro forma for the contemplated acquisition from 6.3 times based on the last 12 months to March 31; and (b) the planned acquisition would somewhat improve Unilabs' profitability and also increase the company's scale and position in a key existing market.

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