Moody’s ups 21st Century Oncology

Moody's Investors Service said it upgraded 21st Century Oncology, Inc.'s corporate family rating and probability of default rating to B3 and B3-PD, respectively.

Concurrently, the agency upgraded the $100 million revolving credit facility and $90 million term loan to Ba3 from B1, the existing $350 million 8 7/8% second-lien notes to B2 from Caa2 and the rating on the $380 million 9.875% subordinated notes to Caa2 from Caa3.

The speculative grade liquidity rating was upgraded to SGL-2 from SGL-3.

The outlook is stable. This concludes the review of 21st Century's ratings that was initiated on Oct. 1.

Moody’s said the upgrade of the corporate family rating to B3 and SGL to SGL-2 reflects the receipt of a $325 million preferred equity investment from the Canada Pension Plan Investment Board (CPPIB) and subsequent debt reduction.

The company has reduced debt by almost $200 million.

The investment will enable the company to continue to pursue various growth initiatives, while reducing interest expense and improving the company's liquidity profile providing full revolver availability and an increase in balance sheet cash, the agency said. The investment negated the Restructuring Support Agreement that 21st Century entered with a group of bondholders in July 2014.

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