Moody’s cuts 21st Century, loans, notes

Moody's Investors Service said it downgraded 21st Century Oncology, Inc.'s corporate family rating to Caa1 from B3, probability of default rating to Caa1-PD from B3-PD, first-lien bank credit facility ratings to B2 from B1 and senior unsecured note rating to Caa3 from Caa2.

Concurrently, the agency lowered the speculative grade liquidity rating to SGL-4 from SGL-2.

The outlook is stable.

Moody’s said the downgrade reflects its expectation for negative free cash flow in 2016, which will further stress the company's weak liquidity position. The agency also believes that operating pressures will result in lower EBITDA and that Moody's adjusted leverage will increase to around 6.5 times by the end of 2016.

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