Moody's cuts ADMI, rates add-on B3

Moody's Investors Service said it downgraded ADMI Corp.'s (TAG) corporate family rating to B3 from B2, probability of default rating to B3-PD from B2-PD, and the ratings on the first-lien senior secured term loan and first-lien senior secured revolving credit facility to B3 from B2. The agency also assigned a B3 rating to the new incremental $275 million term loan. The agency changed to stable from negative.

“The actions follow TAG's announced $275 million term loan that has been privately placed,” Moody’s said in a press release.

TAG will use the loan to acquire the assets of AZ Pet Vet Holding, LLC, including the equity interests in each of its hospitals and associated contracts.

The stable outlook reflects an expectation that leverage will moderate as earnings growth and cash flow metrics will continue to improve over the next 12-18 months following the recent acquisitions, Moody’s said.

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