Moody’s: Ephios notes Caa1, B2

Moody’s Investors Service said it assigned a definitive B2 corporate family rating to Ephios Holdco II plc, which has become the leading European clinical laboratory services group after the acquisitions of Labco SA and synlab Holding GmbH.

Moody’s also said it assigned a definitive Caa1 rating to the €375 million senior unsecured notes issued by Ephios Holdco II and a definitive B2 rating to the €1.49 million senior secured notes issued by Ephios Bondco plc.

Moody’s also said it assigned a B2-PD probability of default rating to Ephios Holdco II.

The outlook is stable.

The action follows news that Ephios completed the acquisition of Synlab and repaid Synlab’s banking facilities after it had obtained regulatory approval Sept. 10 from the European Commission, Moody’s said.

Ephios also completed the acquisition of Labco on Aug. 7 and repaid Labco’s senior secured notes Aug. 12 after it obtained regulatory approval from the European Commission in July, the agency said.

The acquisitions have been completed in line with expectations, Moody’s said.

The ratings reflect the company’s high expected leverage in 2015, acquisition-driven strategy and continued pricing pressures from government cuts, the agency said.

The ratings also consider Ephios’s leading market position in the European clinical laboratory-services market with some barriers to entry, Moody’s said.

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